II 

110TH CONGRESS 

1ST SESSION S. 723 

To provide certain enhancements to the Montgomery GI Bill Program for 

certain individuals who serve as members of the Armed Forces after 

the September 11, 2001, terrorist attacks, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 1, 2007 

Mr. HAGEL (for himself and Mr. KENNEDY) introduced the following bill; 

which was read twice and referred to the Committee on Armed Services 

A BILL 

To provide certain enhancements to the Montgomery GI Bill 

Program for certain individuals who serve as members 

of the Armed Forces after the September 11, 2001, 

terrorist attacks, 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 ‘‘Montgomery GI Bill 

5 Enhancement Act of 2007’’. 


hsrobinson on PROD1PC76 with BILLS
2 

•S 723 IS

1 SEC. 2. EXEMPTION FROM PAYMENT OF INDIVIDUAL CON2 TRIBUTIONS UNDER MONTGOMERY GI BILL 

3 OF INDIVIDUALS WHO SERVE AS ACTIVE 

4 DUTY MEMBERS OF THE ARMED FORCES 

5 UNDER EXECUTIVE ORDER 13235. 

6 (a) ACTIVE DUTY PROGRAM.—Notwithstanding sec7 tion 3011(b) of title 38, United States Code, no reduction 

8 in basic pay otherwise required by such section shall be 

9 made in the case of a covered member of the Armed 

10 Forces. 

11 (b) SELECTED RESERVE PROGRAM.—Notwith12 standing section 3012(c) of such title, no reduction in 

13 basic pay otherwise required by such section shall be made 

14 in the case of a covered member of the Armed Forces. 

15 (c) TERMINATION OF ON-GOING REDUCTIONS IN

16 BASIC PAY.—In the case of a covered member of the 

17 Armed Forces who first became a member of the Armed 

18 Forces or first entered on active duty as a member of the 

19 Armed Forces before the date of the enactment of this 

20 Act and whose basic pay would, but for subsection (a) or 

21 (b) of this section, be subject to reduction under section 

22 3011(b) or 3012(c) of such title for any month beginning 

23 on or after that date, the reduction of basic pay of such 

24 covered member of the Armed Forces under such section 

25 3011(b) or 3012(c), as applicable, shall cease commencing 

26 with the first month beginning on or after that date. 


hsrobinson on PROD1PC76 with BILLS
3 

•S 723 IS

1 (d) REFUND OF CONTRIBUTIONS.— 

2 (1) IN GENERAL.—In the case of any covered 

3 member of the Armed Forces whose basic pay was 

4 reduced under section 3011(b) or 3012(c) of such 

5 title for any month beginning before the date of the 

6 enactment of this Act, the Secretary concerned shall 

7 pay to such covered member of the Armed Forces an 

8 amount equal to the aggregate amount of reductions 

9 of basic pay of such member of the Armed Forces 

10 under such section 3011(b) or 3012(c), as applica11 ble, as of that date. 

12 (2) TAX EXEMPTION.—Any amount paid to a 

13 covered member of the Armed Forces under para14 graph (1) shall not be included in gross income 

15 under the Internal Revenue Code of 1986. 

16 (3) DERIVATION OF FUNDS.—Amounts for pay17 ments made by a Secretary concerned under para18 graph (1) during fiscal year 2007 shall be derived 

19 from amounts made available for such fiscal year in 

20 an Act making supplemental appropriations for de21 fense and the reconstruction of Iraq. 

22 (4) SECRETARY CONCERNED DEFINED.—In this 

23 subsection, the term ‘‘Secretary concerned’’ means— 

24 (A) the Secretary of the Army, with re25 spect to matters concerning the Army; 


hsrobinson on PROD1PC76 with BILLS
4 

•S 723 IS

1 (B) the Secretary of the Navy, with re2 spect to matters concerning the Navy or the 

3 Marine Corps; 

4 (C) the Secretary of the Air Force, with 

5 respect to matters concerning the Air Force; 

6 and 

7 (D) the Secretary of Homeland Security, 

8 with respect to matters concerning the Coast 

9 Guard. 

10 (e) COVERED MEMBER OF THE ARMED FORCES DE11 FINED.—In this section, the term ‘‘covered member of the 

12 Armed Forces’’ means any individual who serves on active 

13 duty as a member of the Armed Forces during the pe14 riod— 

15 (1) beginning on November 16, 2001, the date 

16 of Executive Order 13235, relating to National 

17 Emergency Construction Authority; and 

18 (2) ending on the termination date of the Exec19 utive order referred to in paragraph (1). 


hsrobinson on PROD1PC76 with BILLS
5 

•S 723 IS

1 SEC. 3. OPPORTUNITY FOR INDIVIDUALS WHO SERVE AS 

2 ACTIVE DUTY MEMBERS OF THE ARMED 

3 FORCES UNDER EXECUTIVE ORDER 13235 TO 

4 WITHDRAW ELECTION NOT TO ENROLL IN 

5 MONTGOMERY GI BILL. 

6 Section 3018 of title 38, United States Code, is 

7 amended— 

8 (1) by redesignating subsections (c) and (d) as 

9 subsection (d) and (e), respectively; 

10 (2) by inserting after subsection (b) the fol11 lowing new subsection (c): 

12 ‘‘(c)(1) Notwithstanding any other provision of this 

13 chapter, during the one-year period beginning on the date 

14 of the enactment of this subsection, an individual who— 

15 ‘‘(A) serves on active duty as a member of the 

16 Armed Forces during the period beginning on No17 vember 16, 2001, and ending on the termination 

18 date of Executive Order 13235, relating to National 

19 Emergency Construction Authority; and 

20 ‘‘(B) has served continuously on active duty 

21 without a break in service following the date the in22 dividual first becomes a member or first enters on 

23 active duty as a member of the Armed Forces, 

24 shall have the opportunity, on such form as the Secretary 

25 of Defense shall prescribe, to withdraw an election under 


hsrobinson on PROD1PC76 with BILLS
6 

•S 723 IS

1 section 3011(c)(1) or 3012(d)(1) of this title not to receive 

2 education assistance under this chapter. 

3 ‘‘(2) An individual described in paragraph (1) who 

4 made an election under section 3011(c)(1) or 3012(d)(1) 

5 of this title and who— 

6 ‘‘(A) while serving on active duty during the 

7 one-year period beginning on the date of the enact8 ment of this subsection makes a withdrawal of such 

9 election; 

10 ‘‘(B) continues to serve the period of service 

11 which such individual was obligated to serve; 

12 ‘‘(C) serves the obligated period of service de13 scribed in subparagraph (B) or before completing 

14 such obligated period of service is described by sub15 section (b)(3)(B); and 

16 ‘‘(D) meets the requirements set forth in para17 graphs (4) and (5) of subsection (b), 

18 is entitled to basic educational assistance under this chap19 ter.’’; and 

20 (3) in subsection (e), as so redesignated, by in21 serting ‘‘or (c)(2)(A)’’ after ‘‘(b)(1)’’. 

Æ 


hsrobinson on PROD1PC76 with BILLS