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###### Department of Defense

###### Department of Veterans Affairs

          - 38 CFR Part 21 
          - RIN 2900-AK41 

# AGENCIES:

Department of Defense and Department of Veterans Affairs. 

# ACTION:

Final rule. 

# SUMMARY:

The law provides that rates of subsistence allowance and educational assistance payable under the Educational Assistance Test Program shall be adjusted annually by the Secretary of Defense based upon the average actual cost of attendance at public institutions of higher education in the twelve-month period since the rates were last adjusted. After consultation with the Department of Education, the Department of Defense has concluded that the rates for the 2000-01 academic year should be increased by 4% over the rates payable for the 1999-2000 academic year. The regulations dealing with these rates are amended accordingly. 

# DATES:

*Effective Date:*                         June 14, 2001.                     

*Applicability Date:*                         The changes in rates are applied retroactively to October 1, 2000, to conform to statutory requirements.                     

# FOR FURTHER INFORMATION CONTACT:

William G. Susling, Jr., Assistant Director for Policy and Program Development, Education Service, Veterans Benefits Administration, 202-273-7187. 

# SUPPLEMENTARY INFORMATION:

The law (10 U.S.C. 2145) provides that the Secretary of Defense shall adjust the amount of educational assistance which may be provided in any academic year under the Educational Assistance Test Program and the amount of subsistence allowance authorized under that program. The adjustment is to be based upon the twelve-month increase in the average actual cost of attendance at public institutions of higher education. As required by law, the Department of Defense has consulted with the Department of Education. The Department of Defense has concluded that these costs increased by 4% in the 1999-2000 academic year. Accordingly, this final rule changes 38 CFR 21.5820 and 21.5822 to reflect a 4% increase in the rates payable in the 2000-01 academic year, including changes in § 21.5820 to the adjustments that compensate for rounding. In addition, nonsubstantive changes are made for the purpose of clarification. 

## Administrative Procedure Act 

The rates of subsistence allowance and educational assistance payable under the Educational Assistance Test Program are determined based on a statutory formula and, in essence, the calculation of rates merely constitutes a non-discretionary ministerial act. The other changes made by this document are merely nonsubstantive changes for the purpose of clarification. Accordingly, there is a basis for dispensing with notice-and-comment and a delayed effective date under 5 U.S.C. 552 and 553. 

## Paperwork Reduction Act 

This document contains no provisions constituting a collection of information under the Paperwork Reduction Act (44 U.S.C. 3501-3520). 

## Executive Order 12866

This document has been reviewed by the Office of Management and Budget under Executive Order 12866. 

## Regulatory Flexibility Act 

The Secretary of Veterans Affairs and the Secretary of Defense hereby certify that this final rule will not have a significant economic impact on a substantial number of small entities as they are defined in the Regulatory Flexibility Act, 5 U.S.C 601-612. This final rule directly affects only individuals. Pursuant to 5 U.S.C. 605(b), this final rule, therefore, is exempt from the initial and final regulatory flexibility analyses requirements of sections 603 and 604. 

There is no Catalog of Federal Domestic Assistance number for the program affected by this final rule. 

# List of Subjects in 38 CFR Part 21

      - Administrative practice and procedure
      - Armed forces
      - Civil rights
      - Claims
      - Colleges and universities
      - Conflict of interests
      - Defense Department
      - Education
      - Employment
      - Grant programs—education
      - Grant programs—veterans
      - Health care
      - Loan programs—education
      - Loan programs—veterans
      - Manpower training programs
      - Reporting and recordkeeping requirements
      - Schools
      - Travel and transportation expenses
      - Veterans
      - Vocational education
      - Vocational rehabilitation

Approved: February 6, 2001. 

Anthony J. Principi, 

Secretary of Veterans Affairs. 

Approved: March 7, 2001. 

P.A. Tracey, 

Vice Admiral, USN, Deputy Assistant Secretary (Military Personnel Policy), Department of Defense. 

For the reasons set out in the preamble, 38 CFR part 21 (subpart H) is amended as set forth below. 

# PART 21—VOCATIONAL REHABILITATION AND EDUCATION 

# Subpart H—Educational Assistance Test Program 

1. The authority citation for part 21, subpart H is revised to read as follows: 

      ( print page 32226)    Authority:10 U.S.C. ch. 107; 38 U.S.C. 501(a), 3695, 5101, 5113, 5303A; 42 U.S.C. 2000; sec. 901, Pub. L. 96-342, 94 Stat. 1111-1114, unless otherwise noted. 

§ 21.5820

2. Section 21.5820 is amended by: 

a. In paragraph (b)(1), removing “1999-2000” and adding, in its place, “2000-01”; and by removing “$3,388” and adding, in its place, “$3,524”; 

b. In the introductory text of paragraph (b)(2)(ii), removing “1999-2000” and adding, in its place, “2000-01”; 

c. In paragraph (b)(2)(ii)(A), removing “$376.44” and adding, in its place, “$391.56”; and by removing “$188.22” and adding, in its place, “$195.78”; 

d. In paragraph (b)(2)(ii)(B), removing “$12.55” and adding, in its place, “$13.05”; and by removing “$6.27” and adding, in its place, “$6.53”; 

e. In paragraph (b)(2)(ii)(C), removing “increased by 4¢ ” and adding, in its place, “decreased by 4¢”; and by removing “increased by 2¢” and adding, in its place, “decreased by 2¢”. 

f. In the introductory text of paragraph (b)(3)(ii), removing “1999-2000” and adding, in its place, “2000-01”; 

g. In paragraph (b)(3)(ii)(A), removing “$376.44” and adding, in its place, “$391.56”; and by removing “$188.22” and adding, in its place, “$195.78”; 

h. In paragraph (b)(3)(ii)(B), removing “$12.55” and adding, in its place, “$13.05”; and by removing “$6.27” and adding, in its place, “$6.53”; 

i. In paragraph (b)(3)(ii)(C), removing “increased by 4¢” and adding, in its place, “decreased by 4¢”; and by removing “increased by 2¢” and adding, in its place, “decreased by 2¢”. 

j. Removing “shall” each place in which it appears and adding, in its place, “will”. 

§ 21.5822

3. Section 21.5822 is amended by: 

a. In paragraph (b)(1)(i), removing “$844” and adding, in its place, “$878”; and by removing “1999-2000” and adding, in its place, “2000-01”; 

b. In paragraph (b)(1)(ii), removing “$422” and adding, in its place, “$439”; and by removing “1999-2000” and adding, in its place, “2000-01”; 

c. In paragraph (b)(2)(i), removing “1999-2000” and adding, in its place, “2000-01”; and by removing “$844” and adding, in its place, “$878”; 

d. In paragraph (b)(2)(ii), removing “1999-2000” and adding, in its place, “2000-01”; and by removing “$422” and adding, in its place, “$439”. 

e. Removing “shall” each place in which it appears and adding, in its place, “will”. 

[FR Doc. 01-15068 Filed 6-13-01; 8:45 am] 

BILLING CODE 8320-01-U