93d Congress, 2c1 Session House l)ocnment No. 93 3iK;

VIETNAM ERA VETERANS' REAI),USTMENT

ASSISTANCE ACT OF 1974

MESSAGE

FROM

THE PRESIDENT OF THE UNITED STATES

VETOING

H.R. 12628, THE "VIETNAM ERA VETERANS' READJUSTMENT

ASSISTANCE ACT OF 1974"

w

NOVEMBER 26, 1974.-Message and accompanying act ordered

to be printed as a House document.

38-0110

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON 1974

93d Congress, 2d Session House Document No. 9)3-396
To the House of Representatives:

I am returning today without my approval H.R. 12628, a bill

which would provide what I consider an excessive increase and liberalization of veterans' education and training benefits.

Instead, I urge the Congress to send me a veterans' education bill

along the lines that I have proposed. By doing so, we can avoid

adding another half billion dollar load to the already overburdened

taxpayer. Failure to do so will mean that the Congress will in the

aggregate-Federal pay deferral, Railroad Retirement and Veterans

Education-add over one and a half billion dollars to the Federal

deficit in 1975.

This bill which I am returning to the Congress provides benefits

that are greater than those granted to World War II and Korea

veterans. It would cost the taxpayers half a billion dollars more in

fiscal year 1975 than is appropriate in view of the country's current

economic circumstances.

The decision not to sign this bill has not been an easy one. But it is

necessary if all of us are to operate with essential budgetary restraint.

The Nation must reduce Federal spending if we are to stop the inflation spiral.

I have asked the Congress on previous occasions to join with me

to hold down Federal spending and help whip inflation. In two

important instances, the Federal pay deferral plan and the Railroad

Retirement bill, the Congress refused to join with me and the result

has added an additional one billion dollars to the Federal taxpayers'

burden.

Veterans' benefits should-and can-be improved. I continue to support a responsible increase in education benefits for veterans. I again

urge the Congress, as I have on many occasions, to enact a GI Bill

providing for an 18.2 percent benefit increase rather than the 23 percent in this bill. Such action would be in keeping with the need for

fiscal responsibility while recognizing the Nation's special debt to our

veterans.

Since the Vietnam-era GI bill first went into effect in 1966, the total

of veterans' benefit increases enacted through 1972 have substantially

exceeded the rise in cost of living. Not including the provisions of this

bill, the basic monthly education allowance has increased by a $120

per month or 120 percent since 1966. This compares with an actual rise

of 55 percent in the Consumer Price Index.

In addition to the 23 percent benefit increase, this bill extends entitlement for GI bill benefits from 36 to 45 months for undergraduates.

I believe the present entitlement of four academic years is sufficient

time to permit a veteran to obtain his baccalaureate degree and to

enable him to adjust to civilian life.
IV

In addition, the bill contains other objectionable features despite

my urging that they be eliminated. It establishes a new direct loan

program for veteran students which departs from the sound objective

of providing student aid through one department-Health, Education

and Welfare-rather than through various Federal agencies. A direct

loan program is also inefficient compared to available guaranteed loan

programs, which provide substantially more assistance to the veteran

at less cost to the Federal taxpayer.

I am returning this bill with reluctance, but it is my earnest hope

that the Congress will demonstrate its willingness to join the executive branch in taking the difficult actions needed to hold down spending by the Federal Government while being equitable with our

veterans.

GERALD R. FoRD.

THE WHrir HousE, November 96, 1974.