I 

109TH CONGRESS 

1ST SESSION H. R. 2248 

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

program, by eliminating the time limitation for use of benefits under 

the program, by expanding the opportunities to transfer educational 

assistance benefits to dependents, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 11, 2005 

Mr. EVANS (for himself, Mr. DINGELL, Mr. FILNER, Mr. GUTIERREZ, Ms. 

CORRINE BROWN of Florida, Ms. HERSETH, Mr. STRICKLAND, Ms. 

HOOLEY, Mr. REYES, Mr. UDALL of New Mexico, Mr. SHERMAN, Mr. 

PALLONE, Ms. CARSON, Mr. SCHIFF, Mr. HOLT, Mr. DAVIS of Florida, 

Mrs. MALONEY, Mr. SERRANO, Mrs. JONES of Ohio, Mr. HIGGINS, Mr. 

GRIJALVA, Mr. MORAN of Virginia, and Mr. CONYERS) introduced the 

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

and in addition to the Committee on Armed Services, for a period to be 

subsequently determined by the Speaker, in each case for consideration 

of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

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

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

amount of basic educational assistance, by repealing the 

requirement for reduction in pay for participation in 

the program, by eliminating the time limitation for use 

of benefits under the program, by expanding the opportu-
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nities to transfer educational assistance benefits to dependents, 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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Montgomery GI Bill Improvements Act of 2005’’. 

6 (b) TABLE OF CONTENTS.—The table of contents of 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Enhanced benefits under the Montgomery GI Bill for four years of active-duty service. 

Sec. 3. Increase in rates of basic educational assistance under the Montgomery 

GI Bill. 

Sec. 4. Repeal of pay reduction and high school graduation requirement for 

participation in basic educational assistance under the Montgomery GI Bill. 

Sec. 5. Repeal of delimiting date for use of entitlement to basic educational assistance under the Montgomery GI Bill. 

Sec. 6. Elimination of limitation to critical military skills for authority to transfer entitlement. 

Sec. 7. Increase in repayment amounts under the student loan repayment programs for servicemembers. 

Sec. 8. Expansion of programs of education eligible for accelerated payments of 

educational assistance under the Montgomery GI Bill. 

8 SEC. 2. ENHANCED BENEFITS UNDER THE MONTGOMERY 

9 GI BILL FOR FOUR YEARS OF ACTIVE-DUTY 

10 SERVICE. 

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

12 States Code, is amended by adding at the end the fol13 lowing new subchapter: 
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1 ‘‘SUBCHAPTER V—ENHANCED EDUCATIONAL 

2 ASSISTANCE 

3 ‘‘§ 3041. Enhanced educational assistance entitlement 

4 ‘‘(a) ENTITLEMENT.—An eligible individual is enti5 tled to enhanced educational assistance under this sub6 chapter. 

7 ‘‘(b) ELIGIBLE INDIVIDUAL DEFINED.—(1) For pur8 poses of this subchapter, the term ‘eligible individual’ 

9 means an individual who meets the service requirement 

10 described in subsection (c) and whose status after comple11 tion of such service is described in section 3011(a)(3) of 

12 this title (relating to continuation on active duty, honor13 able discharge, or honorable service, as the case may be). 

14 ‘‘(2) Such term does not include an individual de15 scribed in paragraph (1) or (2) of section 3011(c) of this 

16 title (relating to individuals not electing basic educational 

17 assistance under subchapter II of this chapter or certain 

18 commissioned officers, respectively). 

19 ‘‘(c) SERVICE REQUIREMENT.—(1) The service re20 quirement referred to in subsection (b) is as follows: 

21 ‘‘(A) After September 30, 2005, the indi22 vidual— 

23 ‘‘(i) first enters on active duty; 
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1 ‘‘(ii) reenlists or extends an enlistment on 

2 active duty as a member of the Armed Forces; 

3 or 

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

5 serve on active duty after that date. 

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

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

8 individual— 

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

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

11 or 

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

13 Forces and is discharged or released from ac14 tive duty— 

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

16 section 3011(a)(1)(A)(ii) of this title (re17 lating to service-connected disabilities and 

18 other medical conditions); 

19 ‘‘(II) for the convenience of the Gov20 ernment, after having completed not less 

21 than 42 months of continuous active duty; 

22 or 

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

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

25 (relating to involuntary discharge or re-
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1 lease for the convenience of the Govern2 ment as a result of a reduction in force). 

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

4 following rules apply: 

5 ‘‘(A) Any period of service described in para6 graph (2) or (3) of section 3011(d) of this title (re7 lating to periods of service terminated because of a 

8 defective enlistment and periods of service on active 

9 duty which individuals in the Selected Reserve were 

10 ordered to perform under certain provisions of chap11 ter 1209 of title 10, respectively) that applies to an 

12 eligible individual under this section shall not be 

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

14 duty. 

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

16 section 3011(f) of this title (relating to certain mem17 bers discharged or released who subsequently reen18 list or re-enter on a period of active duty) who 

19 serves the periods of active duty referred to in such 

20 paragraph shall be deemed to have served a contin21 uous period of active duty the length of which is the 

22 aggregate length of the periods of active duty re23 ferred to in such paragraph. 

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

25 this title (relating to assignment full time at a civil-
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1 ian institution for courses of education and to com2 mencement of courses of education at a service acad3 emy, respectively) apply with respect to an eligible 

4 individual under this section in the same manner as 

5 they apply to an individual under section 3011 of 

6 this title. 

7 ‘‘(d) ELECTION OF BASIC EDUCATIONAL ASSIST8 ANCE.—(1) An eligible individual entitled to enhanced 

9 educational assistance under this subchapter may elect (in 

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

11 basic educational assistance under subchapter II in lieu 

12 of such enhanced educational assistance for an enrollment 

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

14 30 days before the beginning of the enrollment period. 

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

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

17 revocation be made later than 30 days before the begin18 ning of the enrollment period. 

19 ‘‘§ 3042. Duration of enhanced educational assistance 

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

21 title and except as provided in subsection (b), each indi22 vidual entitled to enhanced educational assistance under 

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

24 educational assistance allowance under this subchapter for 

25 a period or periods not to exceed a total of 36 months 
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1 (or the equivalent thereof in part-time enhanced edu2 cational assistance). 

3 ‘‘(b) SPECIAL RULE FOR CERTAIN EARLY SEPARA4 TIONS.—Subject to section 3695 of this title, in the case 

5 of an individual described in subclause (I) or (III) of sec6 tion 3041(c)(1)(B)(ii) of this title (relating to individuals 

7 discharged for service-connected disabilities or medical 

8 conditions or whose service is involuntarily terminated for 

9 the convenience of the Government as a result of a reduc10 tion in force, respectively) who does not serve a continuous 

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

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

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

14 educational assistance benefits under this subchapter (not 

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

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

17 month of continuous active duty served by the individual 

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

19 reenlistment, enlistment extension, or continuation appli20 cable to that individual under section 3041(c)(1)(A) of 

21 this title begins. 

22 ‘‘§ 3043. Payment of educational expenses 

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

24 Secretary shall pay to the educational institution providing 

25 a course under an approved program of education to an 
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1 eligible individual under this subchapter who is enrolled 

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

3 payable by the individual. 

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

5 to nonveterans in similar circumstances. 

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

7 The Secretary shall pay to each eligible individual under 

8 this subchapter who is pursuing an approved program of 

9 education— 

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

11 this title; and 

12 ‘‘(2) in accordance with regulations prescribed 

13 by the Secretary, an amount equal to the average 

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

15 payable by individuals pursuing courses of education 

16 at educational institutions. 

17 ‘‘§ 3044. Amount of stipend 

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

19 3042 of this title, the stipend under this subchapter shall 

20 be paid at a monthly rate (as that rate may be increased 

21 pursuant to subsection (b)) as follows: 

22 ‘‘(1) At the monthly rate of $900 for an ap23 proved program of education pursued on a full-time 

24 basis. 
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1 ‘‘(2) At the monthly rate of $700 for an ap2 proved program of education pursued on a three3 quarter-time basis. 

4 ‘‘(3) At the monthly rate of $500 for an ap5 proved program of education pursued on a half-time 

6 basis. 

7 ‘‘(4) At the monthly rate of $300 for an ap8 proved program of education pursued on less than a 

9 half-time basis. 

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

11 any fiscal year beginning after fiscal year 2006, the Sec12 retary shall provide a percentage increase (rounded to the 

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

14 equal to the percentage by which— 

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

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

17 ending on the June 30 preceding the beginning of 

18 the fiscal year for which the increase is made, ex19 ceeds 

20 ‘‘(2) such Consumer Price Index for the 12– 

21 month period preceding the 12-month period de22 scribed in paragraph (1).’’. 

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

24 of such title is amended by inserting at the end the fol25 lowing new paragraph: 
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1 ‘‘(9) The term ‘enhanced educational assistance’ 

2 means educational assistance provided under subchapter 

3 V.’’. 

4 (2) Section 3011 of such title is amended in sub5 section (f)(1) and (g) by striking ‘‘chapter’’ each place it 

6 appears and inserting ‘‘subchapter’’. 

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

8 striking ‘‘education assistance under this chapter’’ and in9 serting ‘‘educational assistance under this subchapter’’. 

10 (4) Section 3018B of such title is amended by strik11 ing ‘‘education assistance under this chapter’’ each place 

12 it appears and inserting ‘‘educational assistance under 

13 this subchapter’’. 

14 (5) Section 3018C of such title is amended by strik15 ing ‘‘educational assistance under this chapter’’ each place 

16 it appears and inserting ‘‘educational assistance under 

17 this subchapter’’. 

18 (6) Section 3019 of such title is amended by striking 

19 ‘‘chapter’’ each place it appears and inserting ‘‘sub20 chapter’’. 

21 (7) Section 3032(e)(3) of such title is amended by 

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

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

24 at the beginning of chapter 30 of title 38, United States 
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1 Code, is amended by adding at the end the following new 

2 items: 

‘‘SUBCHAPTER V—ENHANCED EDUCATIONAL ASSISTANCE

‘‘3041. Enhanced educational assistance entitlement. 

‘‘3042. Duration of enhanced educational assistance. 

‘‘3043. Payment of educational expenses. 

‘‘3044. Amount of stipend.’’. 

3 SEC. 3. INCREASE IN RATES OF BASIC EDUCATIONAL AS4 SISTANCE UNDER THE MONTGOMERY GI 

5 BILL. 

6 (a) RATES FOR BASIC EDUCATIONAL ASSISTANCE.— 

7 Section 3015 of title 38, United States Code, is amend8 ed— 

9 (1) in subsection (a)(1)— 

10 (A) in subparagraph (C), by striking 

11 ‘‘and’’ at the end; 

12 (B) by redesignating subparagraph (D) as 

13 subparagraph (F); and 

14 (C) by inserting after subparagraph (C) 

15 the following new subparagraphs: 

16 ‘‘(D) for months occurring during fiscal year 

17 2005, $1,004; 

18 ‘‘(E) for months occurring during fiscal year 

19 2006, $1,300; and’’; and 

20 (2) in subsection (b)(1)— 

21 (A) in subparagraph (C), by striking 

22 ‘‘and’’ at the end; 
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1 (B) by redesignating subparagraph (D) as 

2 subparagraph (F); and 

3 (C) by inserting after subparagraph (C) 

4 the following new subparagraphs: 

5 ‘‘(D) for months occurring during fiscal year 

6 2005, $816; 

7 ‘‘(E) for months occurring during fiscal year 

8 2006, $1,000; and’’. 

9 (b) APPLICATION OF INDEX BASED ON COSTS OF

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

11 amended to read as follows: 

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

13 shall provide a percentage increase (rounded to the near14 est dollar) in the rates payable under subsections (a)(1) 

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

16 Secretary) by which— 

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

18 expenses for commuter students at public institu19 tions of higher learning that award baccalaureate 

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

21 for the fiscal year involved, exceeds 

22 ‘‘(B) such average monthly costs for the pre23 ceding fiscal year. 
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1 ‘‘(2) The Secretary shall make the determination 

2 under paragraph (1) after consultation with the Secretary 

3 of Education. 

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

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

6 apply with respect to basic educational assistance allow7 ances payable under this section for the fiscal year begin8 ning in that year. 

9 ‘‘(4) Not later than September 30 each year, the Sec10 retary shall publish in the Federal Register the average 

11 monthly costs of tuition and expenses as determined under 

12 paragraph (1) in that year.’’. 

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

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

15 months beginning after September 30, 2005. 

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

17 apply with respect to payments for months beginning after 

18 September 30, 2006. No adjustment in rates of edu19 cational assistance shall be made under section 3015(h) 

20 of title 38, United States Code, for months occurring dur21 ing fiscal year 2006. 
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1 SEC. 4. REPEAL OF PAY REDUCTION AND HIGH SCHOOL 

2 GRADUATION REQUIREMENT FOR PARTICI3 PATION IN BASIC EDUCATIONAL ASSISTANCE 

4 UNDER THE MONTGOMERY GI BILL. 

5 (a) REPEAL OF PAY REDUCTION AND ELECTION OF

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

7 Code, is amended— 

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

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

10 and redesignating paragraphs (2) and (3) as para11 graphs (1) and (2), respectively. 

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

13 (A) by striking subsection (c); and 

14 (B) in subsection (d), by striking paragraph (1) 

15 and redesignating paragraphs (2) and (3) as para16 graphs (1) and (2), respectively. 

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

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

19 3011(c)(1) or section 3012(d)(1)’’. 

20 (4) The amendments made by this subsection shall 

21 take effect on October 1, 2005, and apply to individuals 

22 whose initial obligated period of active duty under section 

23 3011 or 3012 of title 38, United States Code, as the case 

24 may be, begins on or after such date. 

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

26 referred to in subsection (b) of section 3011 of title 38, 
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1 United States Code, by reason of such subsection, or of 

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

3 of such title by reason of such subsection, shall cease com4 mencing with months beginning after September 30, 

5 2005, and any obligation of such individual under such 

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

7 2005, shall be deemed to be fully satisfied as of such date. 

8 (b) REPEAL OF HIGH SCHOOL GRADUATION RE9 QUIREMENT.—(1) Section 3011(a) of title 38, United 

10 States Code, is amended— 

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

12 (B) by redesignating paragraph (3) as para13 graph (2). 

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

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

16 (B) by redesignating paragraph (3) as para17 graph (2). 

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

19 (A) by striking paragraph (4); 

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

21 (3)(C); and 

22 (C) by redesignating paragraph (5) as para23 graph (4). 

24 (4) The amendments made by this subsection shall 

25 take effect on the date of the enactment of this Act and 
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1 apply with respect to individuals applying for basic edu2 cational assistance under chapter 30 of title 38, United 

3 States Code, on or after such date. 

4 (c) EXCLUSION FROM INCOME FOR ELIGIBILITY DE5 TERMINATIONS FOR FEDERAL EDUCATIONAL LOANS.— 

6 Section 3015 of such title is amended— 

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

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

9 (2) by inserting after subsection (g) the fol10 lowing new subsection: 

11 ‘‘(h) EXCLUSION FROM INCOME FOR ELIGIBILITY

12 DETERMINATIONS FOR FEDERAL EDUCATIONAL

13 LOANS.—Notwithstanding any other provision of law, 

14 amounts payable by the Secretary under this subchapter 

15 with respect to an eligible individual shall not be consid16 ered as income for purposes of determining eligibility of 

17 such individual for education grants or loans under any 

18 other provision of Federal law.’’. 

19 SEC. 5. REPEAL OF DELIMITING DATE FOR USE OF ENTI20 TLEMENT TO BASIC EDUCATIONAL ASSIST21 ANCE UNDER THE MONTGOMERY GI BILL. 

22 (a) REPEAL.—Section 3031 of title 38, United States 

23 Code, and section 16133 of title 10, United States Code, 

24 are repealed. 
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1 (b) CONFORMING AMENDMENTS.—(1) Section 

2 3018C(e)(3)(B) of such title is amended— 

3 (A) by striking clause (ii); and 

4 (B) by striking ‘‘(B)(i)’’ and inserting ‘‘(B)’’. 

5 (2) Section 3020 of such title is amended— 

6 (A) in subsection (f)(1), by striking ‘‘Subject to 

7 the time limitation for use of entitlement under sec8 tion 3031 of this title, an’’ and inserting ‘‘An’’; and 

9 (B) in subsection (h)(5), by striking ‘‘Notwith10 standing section 3031 of this title, a’’ and inserting 

11 ‘‘A’’. 

12 (3) Section 16164 of title 10, United States Code, 

13 is repealed. 

14 (c) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to individuals entitled to edu16 cational assistance under chapter 30 of title 38, United 

17 States Code, on or after the date of the enactment of this 

18 Act. 

19 SEC. 6. ELIMINATION OF LIMITATION TO CRITICAL MILI20 TARY SKILLS FOR AUTHORITY TO TRANSFER 

21 ENTITLEMENT. 

22 Subsection (b) of section 3020 of title 38, United 

23 States Code, is amended— 

24 (1) by striking paragraph (2); 
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1 (2) be redesignating paragraph (3) as para2 graph (2); and 

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

4 (1). 

5 SEC. 7. INCREASE IN REPAYMENT AMOUNTS UNDER THE 

6 STUDENT LOAN REPAYMENT PROGRAMS FOR 

7 SERVICEMEMBERS. 

8 (a) ACTIVE DUTY.—Subsection (b) of section 2171 

9 of title 10, United States Code, is amended— 

10 (1) by striking ‘‘is 33 1/3 percent or $1,500, 

11 whichever is greater,’’ and inserting ‘‘is $6,000’’; 

12 (2) by inserting ‘‘(1)’’ after ‘‘(b)’’; and 

13 (3) by adding at the end the following new 

14 paragraph: 

15 ‘‘(2) The total amount that may be repaid on behalf 

16 of any person under this section may not exceed 

17 $40,000.’’. 

18 (b) SELECTED RESERVE.—Subsection (b) of section 

19 16301 of title 10, United States Code, is amended— 

20 (1) by striking ‘‘is 15 percent or $500, which21 ever is greater,’’ and inserting ‘‘is $3,000’’; 

22 (2) by inserting ‘‘(1)’’ after ‘‘(b)’’; and 

23 (3) by adding at the end the following new 

24 paragraph: 
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1 ‘‘(2) The total amount that may be repaid on behalf 

2 of any person under this section may not exceed 

3 $20,000.’’. 

4 SEC. 8. EXPANSION OF PROGRAMS OF EDUCATION ELIGI5 BLE FOR ACCELERATED PAYMENTS OF EDU6 CATIONAL ASSISTANCE UNDER THE MONT7 GOMERY GI BILL. 

8 (a) IN GENERAL.—Subsection (b)(1) of section 

9 3014A of title 38, United States Code, is amended by 

10 striking ‘‘that leads to employment in a high technology 

11 occupation in a high technology industry (as determined 

12 pursuant to regulations prescribed by the Secretary)’’. 

13 (b) CONFORMING AMENDMENTS.—(1) The heading 

14 of section 3014A of such title is amended to read as fol15 lows: 

16 ‘‘SEC. 3014A. ACCELERATED PAYMENT OF BASIC EDU17 CATIONAL ASSISTANCE FOR CERTAIN AP18 PROVED PROGRAMS OF EDUCATION.’’. 

19 (2) The table of sections at the beginning of chapter 

20 30 of such title is amended by striking the item relating 

21 to section 3014A and inserting after the item relating to 

22 section 3014 the following new item: 

‘‘3014A. Accelerated payment of basic educational assistance for certain approved programs of education.’’. 

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