II 

110TH CONGRESS 

1ST SESSION S. 1409 

To provide and enhance education, housing, and entrepreneur assistance for 

veterans who serve in the Armed Forces after September 11, 2001, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 16, 2007 

Mrs. CLINTON introduced the following bill; which was read twice and referred 

to the Committee on Veterans’ Affairs 

A BILL 

To provide and enhance education, housing, and entrepreneur 

assistance for veterans who serve in the Armed Forces 

after September 11, 2001, 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 ‘‘21st Century GI Bill 

5 of Rights Act of 2007’’. 

6 SEC. 2. EDUCATIONAL ASSISTANCE FOR MEMBERS OF THE 

7 ARMED FORCES WHO SERVE AFTER SEP8 TEMBER 11, 2001. 

9 (a) EDUCATIONAL ASSISTANCE AUTHORIZED.— 


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1 (1) IN GENERAL.—Part III of title 38, United 

2 States Code, is amended by inserting after chapter 

3 32 the following new chapter: 

4 ‘‘CHAPTER 33—EDUCATIONAL ASSIST5 ANCE FOR SERVICE AFTER SEP6 TEMBER 11, 2001 

‘‘SUBCHAPTER I—DEFINITIONS

‘‘Sec. 

‘‘3301. Definitions. 

‘‘SUBCHAPTER II—EDUCATIONAL ASSISTANCE

‘‘3311. Educational assistance for service in the Armed Forces after September 

11, 2001: entitlement. 

‘‘3312. Educational assistance: duration. 

‘‘3313. Educational assistance: payment; amount. 

‘‘3314. Tutorial assistance. 

‘‘3315. Licensure and certification tests. 

‘‘SUBCHAPTER III—ADMINISTRATIVE PROVISIONS

‘‘3321. Time limitation for use of and eligibility for entitlement. 

‘‘3322. Bar to duplication of educational assistance benefits. 

‘‘3323. Administration. 

‘‘3324. Allocation of administration and costs. 

7 ‘‘SUBCHAPTER I—DEFINITIONS 

8 ‘‘§ 3301. Definitions 

9 ‘‘In this chapter: 

10 ‘‘(1) The term ‘active duty’ has the meaning 

11 given such term in sections 101 and 3002(7) of this 

12 title and includes the limitations specified in section 

13 3002(6) of this title. 

14 ‘‘(2) The terms ‘program of education’, ‘Sec15 retary of Defense’, and ‘Selected Reserve’ have the 


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1 meaning given such terms in section 3002 of this 

2 title. 

3 ‘‘SUBCHAPTER II—EDUCATIONAL ASSISTANCE 

4 ‘‘§ 3311. Educational assistance for service in the 

5 Armed Forces after September 11, 2001: 

6 entitlement 

7 ‘‘(a) ENTITLEMENT.—Except as provided in sub8 section (c), each individual described in subsection (b) is 

9 entitled to educational assistance under this chapter. 

10 ‘‘(b) COVERED INDIVIDUALS.—An individual de11 scribed in this subsection is any individual as follows: 

12 ‘‘(1) A member of the Armed Forces who, while 

13 serving on active duty in the Armed Forces after 

14 September 11, 2001, is deployed overseas. 

15 ‘‘(2) A member of the Armed Forces or a Re16 serve of the Armed Forces (including a member of 

17 the National Guard and a member of the Reserves) 

18 who— 

19 ‘‘(A) serves on active duty in the Armed 

20 Forces after September 11, 2001, for an aggre21 gate of at least two years; or 

22 ‘‘(B) before completing the aggregate of 

23 service described in subparagraph (A) while 

24 serving on active duty in the Armed Forces 


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1 after September 11, 2001, is discharged as de2 scribed in subsection (d) after that date. 

3 ‘‘(c) EXCEPTION FOR INDIVIDUALS WHO RECEIVE A

4 COMMISSION AS AN OFFICER UPON GRADUATION FROM

5 AN ACADEMY.—An individual who receives a commission 

6 as an officer in the Armed Forces upon graduation from 

7 the United States Military Academy, the United States 

8 Naval Academy, the United States Air Force Academy, 

9 the United States Merchant Marine Academy, or the 

10 Coast Guard Academy is not entitled to educational assist11 ance under this chapter. 

12 ‘‘(d) CERTAIN DISCHARGE OR RELEASE PROVIDING

13 EXCEPTION FROM SERVICE REQUIREMENTS.—A dis14 charge or release described in this subsection is a dis15 charge or release from service in the Armed Forces for— 

16 ‘‘(1) a service-connected disability; 

17 ‘‘(2) a medical condition which preexisted such 

18 service and which the Secretary determines is not 

19 service-connected; 

20 ‘‘(3) hardship; or 

21 ‘‘(4) a physical or mental condition that was 

22 not characterized as a disability and did not result 

23 from the individual’s own willful misconduct but did 

24 interfere with the individual’s performance of duty, 

25 as determined by the Secretary of each military deVerDate Aug 31 2005 21:39 May 18, 2007 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1409.IS S1409

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1 partment in accordance with regulations prescribed 

2 by the Secretary of Defense. 

3 ‘‘§ 3312. Educational assistance: duration 

4 ‘‘Subject to section 3695 of this title, an individual 

5 entitled to educational assistance under section 3311 of 

6 this title is entitled to 36 months, which is the equivalent 

7 of four academic years, of educational assistance under 

8 section 3313 of this title. 

9 ‘‘§ 3313. Educational assistance: payment; amount 

10 ‘‘(a) PAYMENT.—The Secretary shall pay to each in11 dividual entitled to educational assistance under this chap12 ter who is pursuing an approved program of education 

13 (other than a program covered by subsections (e) and (f)) 

14 the amounts specified in subsection (c) to meet the ex15 penses of such individual’s subsistence, tuition, fees, and 

16 other educational costs for pursuit of such program of 

17 education. 

18 ‘‘(b) APPROVED PROGRAMS OF EDUCATION.—(1) 

19 Except as provided in paragraph (1), a program of edu20 cation is an approved program of education for purposes 

21 of this chapter if the program of education is approved 

22 for purposes of chapter 30 of this title. 

23 ‘‘(2) A program of education to obtain a graduate 

24 degree is not an approved program of education for the 

25 purposes of this chapter. 


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1 ‘‘(c) AMOUNT OF EDUCATIONAL ASSISTANCE.—(1) 

2 The amounts payable under this subsection for pursuit of 

3 an approved program of education are amounts as follows: 

4 ‘‘(A) An amount equal to the established 

5 charges (as determined in accordance with sub6 section (h)) for the program of education. 

7 ‘‘(B) Subject to paragraph (2), an amount 

8 equal to the room and board of the individual. 

9 ‘‘(2) The amount payable under paragraph (1)(B) for 

10 room and board of an individual may not exceed an 

11 amount equal to the standard dormitory fee, or such 

12 equivalent fee as the Secretary shall specify in regulations, 

13 which similarly circumstanced nonveterans enrolled in the 

14 program of education involved would be required to pay. 

15 ‘‘(d) FREQUENCY OF PAYMENT.—(1) Payment of the 

16 amounts payable under subsection (c)(1) for pursuit of a 

17 program of education shall be made at such time and with 

18 such frequency as the Secretary shall prescribe for pur19 poses of this chapter. Such payment may include payment 

20 in a lump-sum amount for the entire quarter, semester, 

21 or term, as applicable, of the program of education before 

22 the commencement of such quarter, semester, or term. 

23 ‘‘(2) The Secretary shall prescribe in regulations 

24 methods for determining the number of months (including 

25 fractions thereof) of entitlement of an individual to eduVerDate Aug 31 2005 21:39 May 18, 2007 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1409.IS S1409

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1 cational assistance under this chapter that are chargeable 

2 under this chapter for payments of amounts in accordance 

3 with this subsection, including payments on a lump-sum 

4 basis in advance as authorized by paragraph (1). 

5 ‘‘(3) Payment of amounts described in paragraph (1) 

6 for pursuit of a program of education may not be made 

7 to an individual before the date of the enrollment of such 

8 individual in the program of education for which payment 

9 is sought by such individual. 

10 ‘‘(e) PROGRAMS OF EDUCATION PURSUED ON AC11 TIVE DUTY.—(1) Educational assistance is payable under 

12 this chapter for pursuit of an approved program of edu13 cation while on active duty. 

14 ‘‘(2) The amount of educational assistance payable 

15 under this chapter to an individual pursuing a program 

16 of education while on active duty is the lesser of— 

17 ‘‘(A) the established charges (as determined in 

18 accordance with subsection (h)) for the program of 

19 education; or 

20 ‘‘(B) the amount of the charges of the edu21 cational institution as elected by the individual in 

22 the manner specified in section 3014(b) of this title. 

23 ‘‘(3) Payment of the amount payable under para24 graph (2) for pursuit of a program of education shall be 

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1 ter, or term, as applicable, of the program of education 

2 before the commencement of such quarter, semester, or 

3 term. 

4 ‘‘(4) For each month (as determined pursuant to the 

5 methods prescribed under subsection (d)(2)) for which 

6 amounts are paid an individual under this subsection, the 

7 entitlement of the individual to educational assistance 

8 under this chapter shall be charged at the rate of one 

9 month for each such month. 

10 ‘‘(f) PROGRAMS OF EDUCATION PURSUED ON LESS

11 THAN HALF-TIME BASIS.—(1) Educational assistance is 

12 payable under this chapter for pursuit of an approved pro13 gram of education on less than half-time basis. 

14 ‘‘(2) The amount of educational assistance payable 

15 under this chapter to an individual pursuing a program 

16 of education on less than half-time basis is the established 

17 charges (as determined in accordance with subsection (h)) 

18 for the program of education. 

19 ‘‘(3) Payment of the amount payable under this chap20 ter to an individual for pursuit of a program of education 

21 on less than half-time basis shall be made in a lump-sum, 

22 and shall be made not later than the last day of the month 

23 immediately following the month in which certification is 

24 received from the educational institution involved that the 


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1 individual has enrolled in and is pursuing a program of 

2 education at the institution. 

3 ‘‘(4) For each month (as determined pursuant to the 

4 methods prescribed under subsection (d)(2)) for which 

5 amounts are paid an individual under this subsection, the 

6 entitlement of the individual to educational assistance 

7 under this chapter shall be charged at a percentage of a 

8 month equal to— 

9 ‘‘(A) the number of course hours borne by the 

10 individual in pursuit of the program of education in11 volved, divided by 

12 ‘‘(B) the number of course hours for full-time 

13 pursuit of such program of education. 

14 ‘‘(g) SPECIALIZED TRAINING AND CERTIFICATION

15 PROGRAMS FOR VETERANS WITH SERVICE-CONNECTED

16 DISABILITIES.—(1) Educational assistance is payable 

17 under this chapter for— 

18 ‘‘(A) an approved program of education that 

19 consists of specialized training for veterans with 

20 service-connected disabilities; or 

21 ‘‘(B) an approved program of education that is 

22 a certification program for veterans with service-con23 nected disabilities. 

24 ‘‘(2) The amount of educational assistance payable 

25 under this chapter to an individual pursuing a program 


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1 of education pursuant to paragraph (1) is the established 

2 charges (as determined in accordance with subsection (h)) 

3 for the program of education. 

4 ‘‘(h) ESTABLISHED CHARGES.—(1) Subject to the 

5 provisions of this subsection, in subsections (c), (e), (f), 

6 and (g) the term ‘established charges’, in the case of a 

7 program of education, means the actual charges (as deter8 mined pursuant to regulations prescribed by the Secretary 

9 in consultation with the Secretary of Education) for tui10 tion, fees (including required supplies, books, and equip11 ment), and other educational costs which similarly 

12 circumstanced nonveterans enrolled in the program of 

13 education would be required to pay. 

14 ‘‘(2) The maximum amount of charges payable for 

15 tuition under this subsection as part of the established 

16 charges for a program of education pursued by an indi17 vidual under subsections (c), (e), (f), and (g) may not ex18 ceed the national average amount of tuition regularly 

19 charged for full-time pursuit of programs of education at 

20 public and private institutions of higher education that 

21 typically require 36 months, which is the equivalent of 

22 four academic years, to complete. 

23 ‘‘(3) Established charges shall be determined for pur24 poses of this subsection on the following basis: 


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1 ‘‘(A) In the case of an individual enrolled in a 

2 program of education offered on a term, quarter, or 

3 semester basis, the tuition and fees charged the indi4 vidual for the term, quarter, or semester. 

5 ‘‘(B) In the case of an individual enrolled in a 

6 program of education not offered on a term, quarter, 

7 or semester basis, the tuition and fees charged the 

8 individual for the entire program of education. 

9 ‘‘§ 3314. Tutorial assistance 

10 ‘‘(a) IN GENERAL.—Subject to subsection (b), an in11 dividual entitled to educational assistance under this chap12 ter shall also be entitled to benefits provided an eligible 

13 veteran under section 3492 of this title. 

14 ‘‘(b) CONDITIONS.—The provision of benefits under 

15 subsection (a) shall be subject to the conditions applicable 

16 to an eligible veteran under section 3492 of this title. 

17 ‘‘(c) NO CHARGE AGAINST ENTITLEMENT.—Any 

18 benefits provided an individual under subsection (a) are 

19 in addition to any other educational assistance benefits 

20 provided the individual under this chapter. 

21 ‘‘§ 3315. Licensure and certification tests 

22 ‘‘(a) IN GENERAL.—An individual entitled to edu23 cational assistance under this chapter shall also be entitled 

24 to payment for licensing or certification tests described in 

25 section 3452(b) of this title. 


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1 ‘‘(b) NO CHARGE AGAINST ENTITLEMENT.—Any 

2 amount paid an individual under subsection (a) is in addi3 tion to any other educational assistance benefits provided 

4 the individual under this chapter. 

5 ‘‘SUBCHAPTER III—ADMINISTRATIVE 

6 PROVISIONS 

7 ‘‘§ 3321. Time limitation for use of and eligibility for 

8 entitlement 

9 ‘‘(a) IN GENERAL.—Except as otherwise provided in 

10 subsection (b), the period during which an individual enti11 tled to educational assistance under this chapter may use 

12 such individual’s entitlement expires at the end of the 10- 

13 year period beginning on the date of such individual’s last 

14 discharge or release from active duty. 

15 ‘‘(b) EXCEPTIONS.—(1) Subsections (b), (c), and (d) 

16 of section 3031 of this title shall apply with respect to 

17 the running of the 10-year period described in subsection 

18 (a) of this section in the same manner as such subsections 

19 apply under section 3031 of this title with respect to the 

20 running of the 10-year period described in section 3031(a) 

21 of this title. 

22 ‘‘(2) Section 3031(f) of this title shall apply with re23 spect to the termination of an individual’s entitlement to 

24 educational assistance under this chapter in the same 

25 manner as such section applies to the termination of an 


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1 individual’s entitlement to educational assistance under 

2 chapter 30 of this title, except that, in the administration 

3 of such section for purposes of this chapter, the reference 

4 to section 3013 of this title shall be deemed to be a ref5 erence to 3312 of this title. 

6 ‘‘§ 3322. Bar to duplication of educational assistance 

7 benefits 

8 ‘‘(a) IN GENERAL.—An individual entitled to edu9 cational assistance under this chapter who is also eligible 

10 for educational assistance under chapter 30, 31, 32, or 

11 35 of this title, chapter 107, 1606, or 1607 of title 10, 

12 or the provisions of the Hostage Relief Act of 1980 (Public 

13 Law 96–449; 5 U.S.C. 5561 note) may not receive assist14 ance under two or more such programs concurrently, but 

15 shall elect (in such form and manner as the Secretary may 

16 prescribe) under which chapter or provisions to receive 

17 educational assistance. 

18 ‘‘(b) INAPPLICABILITY OF SERVICE TREATED UNDER

19 EDUCATIONAL LOAN REPAYMENT PROGRAMS.—A period 

20 of service counted for purposes of repayment of an edu21 cation loan under chapter 109 of title 10 may not be 

22 counted as a period of service for entitlement to edu23 cational assistance under this chapter. 

24 ‘‘(c) SERVICE IN SELECTED RESERVE.—An indi25 vidual who serves in the Selected Reserve may receive 


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1 credit for such service under only one of this chapter, 

2 chapter 30 of this title, and chapters 1606 and 1607 of 

3 title 10, and shall elect (in such form and manner as the 

4 Secretary may prescribe) under which chapter such service 

5 is to be credited. 

6 ‘‘(d) ADDITIONAL COORDINATION MATTERS.—In the 

7 case of an individual entitled to educational assistance 

8 under chapter 30, 31, 32, or 35 of this title, chapter 107, 

9 1606, or 1607 of title 10, or the provisions of the Hostage 

10 Relief Act of 1980, or making contributions toward enti11 tlement to educational assistance under chapter 30 of this 

12 title, as of the date of the enactment of the 21st Century 

13 GI Bill of Rights Act of 2007, coordination of entitlement 

14 to educational assistance under this chapter, on the one 

15 hand, and such chapters or provisions, on the other, shall 

16 be governed by the provisions of section 2(c) of the 21st 

17 Century GI Bill of Rights Act of 2007. 

18 ‘‘§ 3323. Administration 

19 ‘‘(a) IN GENERAL.—(1) Except as otherwise provided 

20 in this chapter, the provisions specified in section 

21 3034(a)(1) of this title shall apply to the provision of edu22 cational assistance under this chapter. 

23 ‘‘(2) In applying the provisions referred to in para24 graph (1) to an individual entitled to educational assist25 ance under this chapter for purposes of this section, the 


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1 reference in such provisions to the term ‘eligible veteran’ 

2 shall be deemed to refer to an individual entitled to edu3 cational assistance under this chapter. 

4 ‘‘(3) In applying section 3474 of this title to an indi5 vidual entitled to educational assistance under this chapter 

6 for purposes of this section, the reference in such section 

7 3474 to the term ‘educational assistance allowance’ shall 

8 be deemed to refer to educational assistance payable under 

9 section 3313 of this title. 

10 ‘‘(4) In applying section 3482(g) of this title to an 

11 individual entitled to educational assistance under this 

12 chapter for purposes of this section— 

13 ‘‘(A) the first reference to the term ‘educational 

14 assistance allowance’ in such section 3482(g) shall 

15 be deemed to refer to educational assistance payable 

16 under section 3313 of this title; and 

17 ‘‘(B) the first sentence of paragraph (1) of such 

18 section 3482(g) shall be applied as if such sentence 

19 ended with ‘equipment’. 

20 ‘‘(b) INFORMATION ON BENEFITS.—(1) The Sec21 retary of Veterans Affairs shall provide the information 

22 described in paragraph (2) to each member of the Armed 

23 Forces at such times as the Secretary of Veterans Affairs 

24 and the Secretary of Defense shall jointly prescribe in reg25 ulations. 


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1 ‘‘(2) The information described in this paragraph is 

2 information on benefits, limitations, procedures, eligibility 

3 requirements (including time-in-service requirements), 

4 and other important aspects of educational assistance 

5 under this chapter, including application forms for such 

6 assistance under section 5102 of this title. 

7 ‘‘(3) The Secretary of Veterans Affairs shall furnish 

8 the information and forms described in paragraph (2), and 

9 other educational materials on educational assistance 

10 under this chapter, to educational institutions, training es11 tablishments, military education personnel, and such other 

12 persons and entities as the Secretary considers appro13 priate. 

14 ‘‘(c) REGULATIONS.—(1) The Secretary shall pre15 scribe regulations for the administration of this chapter. 

16 ‘‘(2) Any regulations prescribed by the Secretary of 

17 Defense for purposes of this chapter shall apply uniformly 

18 across the Armed Forces. 

19 ‘‘§ 3324. Allocation of administration and costs 

20 ‘‘(a) ADMINISTRATION.—Except as otherwise pro21 vided in this chapter, the Secretary shall administer the 

22 provision of educational assistance under this chapter. 

23 ‘‘(b) COSTS.—Payments for entitlement to edu24 cational assistance earned under this chapter shall be 

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1 able to, the Department of Veterans Affairs for the pay2 ment of readjustment benefits.’’. 

3 (2) CLERICAL AMENDMENTS.—The tables of 

4 chapters at the beginning of title 38, United States 

5 Code, and at the beginning of part III of such title, 

6 are each amended by inserting after the item relat7 ing to chapter 32 the following new item: 

‘‘33. Educational assistance for service after September 

11, 2001 ....................................................................... 3301’’. 

8 (b) CONFORMING AMENDMENTS.— 

9 (1) AMENDMENTS RELATING TO DUPLICATION

10 OF BENEFITS.— 

11 (A) Section 3033 of title 38, United States 

12 Code, is amended— 

13 (i) in subsection (a)(1), by inserting 

14 ‘‘33,’’ after ‘‘32,’’; and 

15 (ii) in subsection (c), by striking 

16 ‘‘both the program established by this 

17 chapter and the program established by 

18 chapter 106 of title 10’’ and inserting ‘‘two 

19 or more of the programs established by 

20 this chapter, chapter 33 of this title, and 

21 chapters 1606 and 1607 of title 10’’. 

22 (B) Paragraph (4) of section 3695(a) of 

23 such title is amended to read as follows: 


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1 ‘‘(4) Chapters 30, 32, 33, 34, 35, and 36 of 

2 this title.’’. 

3 (C) Section 16163(e) of title 10, United 

4 States Code, is amended by inserting ‘‘33,’’ 

5 after ‘‘32,’’. 

6 (2) ADDITIONAL CONFORMING AMENDMENTS.— 

7 (A) Title 38, United States Code, is fur8 ther amended by inserting ‘‘33,’’ after ‘‘32,’’ 

9 each place it appears in the following provi10 sions: 

11 (i) In subsections (b) and (e)(1) of 

12 section 3485. 

13 (ii) In section 3688(b). 

14 (iii) In subsections (a)(1), (c)(1), 

15 (c)(1)(G), (d), and (e)(2) of section 3689. 

16 (iv) In section 3690(b)(3)(A). 

17 (v) In subsections (a) and (b) of sec18 tion 3692. 

19 (vi) In section 3697(a). 

20 (B) Section 3697A(b)(1) of such title is 

21 amended by striking ‘‘or 32’’ and inserting ‘‘32, 

22 or 33’’. 

23 (c) APPLICABILITY TO INDIVIDUALS UNDER MONT24 GOMERY GI BILL PROGRAM.— 


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1 (1) INDIVIDUALS ELIGIBLE TO ELECT PARTICI2 PATION IN EDUCATIONAL ASSISTANCE FOR SERVICE

3 AFTER SEPTEMBER 11, 2001.—An individual may 

4 elect to receive education assistance under chapter 

5 33 of title 38, United States Code (as added by sub6 section (a)), if such individual— 

7 (A) as of the date of the enactment of this 

8 Act— 

9 (i) is entitled to basic educational as10 sistance under chapter 30 of title 38, 

11 United States Code, and has used, but re12 tains unused, entitlement under that chap13 ter; 

14 (ii) is entitled to educational assist15 ance under chapter 107, 1606, or 1607 of 

16 title 10, United States Code, and has used, 

17 but retains unused, entitlement under the 

18 applicable chapter; 

19 (iii) is entitled to basic educational as20 sistance under chapter 30 of title 38, 

21 United States Code, but has not used any 

22 such entitlement under that chapter; 

23 (iv) is entitled to educational assist24 ance under chapter 107, 1606, or 1607 of 

25 title 10, United States Code, but has not 


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1 used any such entitlement under such 

2 chapter; 

3 (v) is a member of the Armed Forces 

4 who is eligible for receipt of basic edu5 cational assistance under chapter 30 of 

6 title 38, United States Code, and is mak7 ing contributions toward such assistance 

8 under section 3011(b) or 3012(c) of such 

9 title; or 

10 (vi) is a member of the Armed Forces 

11 who is not entitled to basic educational as12 sistance under chapter 30 of title 38, 

13 United States Code, by reason of an elec14 tion under section 3011(c)(1) or 

15 3012(d)(1) of such title; and 

16 (B) as of the date of the individual’s elec17 tion under this paragraph— 

18 (i) otherwise meets the requirements 

19 for entitlement to educational assistance 

20 under chapter 33 of title 38, United States 

21 Code (as so added); or 

22 (ii) is making progress toward meet23 ing such requirements. 

24 (2) ELECTION ON TREATMENT OF TRANS25 FERRED ENTITLEMENT.— 


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1 (A) ELECTION.—If, on the date an indi2 vidual described in subparagraph (A)(i) or 

3 (A)(iii) of paragraph (1) makes an election 

4 under that paragraph, a transfer of the entitle5 ment of the individual to basic educational as6 sistance under section 3020 of title 38, United 

7 States Code, is in effect and a number of 

8 months of the entitlement so transferred remain 

9 unutilized, the individual may elect to revoke all 

10 or a portion of the entitlement so transferred 

11 that remains unutilized. 

12 (B) AVAILABILITY OF REVOKED ENTITLE13 MENT.—Any entitlement revoked by an indi14 vidual under this paragraph shall no longer be 

15 available to the dependent to whom transferred, 

16 but shall be available to the individual instead 

17 for educational assistance under chapter 33 of 

18 title 38, United States Code (as so added), as 

19 provided in paragraph (3)(B). 

20 (C) AVAILABILITY OF UNREVOKED ENTI21 TLEMENT.—Any entitlement described in sub22 paragraph (A) that is not revoked by an indi23 vidual in accordance with that subparagraph 

24 shall remain available to the eligible dependent 

25 or dependents concerned in accordance with the 


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1 current transfer of such entitlement under sec2 tion 3020 of title 38, United States Code. 

3 (3) EDUCATIONAL ASSISTANCE FOR SERVICE

4 AFTER SEPTEMBER 11, 2001.— 

5 (A) IN GENERAL.—Subject to subpara6 graph (B), an individual making an election 

7 under paragraph (1) shall be entitled to edu8 cational assistance under chapter 33 of title 38, 

9 United States Code (as so added), in accord10 ance with the provisions of such chapter, in11 stead of basic educational assistance under 

12 chapter 30 of title 38, United States Code, or 

13 educational assistance under chapter 107, 

14 1606, or 1607 of title 10, United States Code, 

15 as applicable. 

16 (B) LIMITATION ON ENTITLEMENT FOR

17 CERTAIN INDIVIDUALS.—In the case of an indi18 vidual making an election under paragraph (1) 

19 who is described by subparagraph (A)(i) of that 

20 paragraph, the number of months of entitle21 ment of such individual to educational assist22 ance under chapter 33 of title 38, United 

23 States Code (as so added), shall be the number 

24 of months equal to the number of months of 

25 unused entitlement of such individual under 


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1 chapter 30 of title 38, United States Code, as 

2 of the date of the election, including any num3 ber of months entitlement revoked by the indi4 vidual under paragraph (2)(A). 

5 (4) TREATMENT OF CONTRIBUTIONS TOWARD

6 BASIC EDUCATIONAL ASSISTANCE; CESSATION OF

7 CONTRIBUTIONS.—Effective as of the first month 

8 beginning on or after the date of an election under 

9 paragraph (1) of an individual described by subpara10 graph (A)(v) of that paragraph, the obligation of 

11 such individual to make contributions under section 

12 3011(b) or 3012(c) of title 38, United States Code, 

13 as applicable, shall cease, and the requirements of 

14 such section shall be deemed to be no longer applica15 ble to such person. 

16 (5) TERMINATION OF ENTITLEMENT UNDER

17 MONTGOMERY GI BILL.—Effective on the last day of 

18 the month in which an individual makes an election 

19 under paragraph (1), the entitlement, if any, of the 

20 individual to basic educational assistance under 

21 chapter 30 of title 38, United States Code, or edu22 cational assistance under chapter 107, 1606, or 

23 1607 of title 10, United States Code, as applicable, 

24 shall terminate. 


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1 (6) IRREVOCABILITY OF ELECTIONS.—An elec2 tion under paragraph (1) or (2)(A) is irrevocable. 

3 SEC. 3. IMPROVEMENTS IN HOUSING BENEFITS FOR VET4 ERANS. 

5 (a) INCREASE IN MAXIMUM GUARANTY AMOUNT OF

6 HOME LOAN GUARANTY PROGRAM.—Section 

7 3703(a)(1)(C) of title 38, United States Code, is amend8 ed— 

9 (1) by striking ‘‘In this paragraph’’ and insert10 ing ‘‘(i) In this paragraph’’; and 

11 (2) by adding at the end the following new 

12 clause: 

13 ‘‘(ii) The Secretary shall increase the dollar amount 

14 described in clause (i) with respect to residences of a par15 ticular size located in any area for which the median price 

16 for such size residence exceeds the dollar amount, to 25 

17 percent of the median price for such a residence in such 

18 area.’’. 

19 (b) REPEAL OF LOAN FUNDING FEES REQUIRE20 MENT FOR HOUSING LOANS.— 

21 (1) IN GENERAL.—Section 3729 of such title is 

22 repealed. 

23 (2) CONFORMING AMENDMENTS.—(A) Section 

24 2041(b)(2) of such title is amended— 


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•S 1409 IS

1 (i) in subparagraph (A), by adding ‘‘and’’ 

2 at the end; 

3 (ii) in subparagraph (B), by striking ‘‘; 

4 and’’ and inserting a period; and 

5 (iii) by striking subparagraph (C). 

6 (B)(i) Section 3703 of such title is amended— 

7 (I) by striking subsection (e); and 

8 (II) by redesignating subsection (f) as sub9 section (e). 

10 (ii) Section 3732(a)(1) of such title is amended 

11 by striking ‘‘Except as provided in section 3703(e) 

12 of this title, if’’ and inserting ‘‘If’’. 

13 (C) Section 3722(c) of such title is amended by 

14 striking ‘‘section 3729 of this title or any other pro15 vision of law or’’ and inserting ‘‘any provision of law 

16 or any’’. 

17 (D) Section 3734(b)(2) of such title is amend18 ed— 

19 (i) by striking subparagraph (A); and 

20 (ii) by redesignating subparagraphs (B), 

21 (C), (D), and (E) as subparagraphs (A), (B), 

22 (C), and (D), respectively. 

23 (3) CLERICAL AMENDMENT.—The table of sec24 tions at the beginning of chapter 37 of such title is 


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•S 1409 IS

1 amended by striking the item relating to section 

2 3729. 

3 (c) AUTHORIZATION OF APPROPRIATIONS FOR VET4 ERANS HOUSING BENEFIT PROGRAM FUND.—There are 

5 authorized to be appropriated for the Veterans Housing 

6 Benefit Program Fund under section 3722 of title 38, 

7 United States Code, such sums as may be necessary to 

8 carry out the amendments made by this section. 

9 SEC. 4. SMALL BUSINESS PROGRAMS FOR VETERANS. 

10 (a) DEFINITIONS.—In this section: 

11 (1) INTERMEDIARY.—The term ‘‘intermediary’’ 

12 has the meaning given that term in section 7(m)(11) 

13 of the Small Business Act (15 U.S.C. 636(m)(11)). 

14 (2) MICROLOAN PROGRAM.—The term 

15 ‘‘Microloan Program’’ means the Microloan Program 

16 under section 7(m) of the Small Business Act (15 

17 U.S.C. 636(m)), as amended by this Act. 

18 (3) VET CENTER.—The term ‘‘vet center’’ 

19 means a center for the provision of readjustment 

20 counseling and related mental health services under 

21 section 1712A of title 38, United States Code. 

22 (4) VETERAN.—The term ‘‘veteran’’ has the 

23 meaning given that term in section 101 of title 38, 

24 United States Code. 


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•S 1409 IS

1 (b) MICROLOAN PROGRAM.—Section 7(m) of the 

2 Small Business Act (15 U.S.C. 636(m)) is amended by 

3 adding at the end the following: 

4 ‘‘(14) LOANS TO VETERANS.— 

5 ‘‘(A) IN GENERAL.—Notwithstanding any 

6 other provision of law— 

7 ‘‘(i) any loan made to a veteran by an 

8 intermediary under this subsection shall 

9 have a rate of interest equal to not more 

10 than 2.5 percent; and 

11 ‘‘(ii) an intermediary— 

12 ‘‘(I) may make a loan to a vet13 eran under this subsection in an 

14 amount of not more than $100,000; 

15 and 

16 ‘‘(II) shall not require collateral 

17 for any loan to a veteran under this 

18 subsection. 

19 ‘‘(B) IDENTIFICATION.—The Adminis20 trator, acting through the Associate Adminis21 trator for Veterans Business Development, 

22 shall— 

23 ‘‘(i) identify intermediaries willing 

24 to— 


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1 ‘‘(I) make loans to veterans on 

2 the terms described in subparagraph 

3 (A); and 

4 ‘‘(II) assist veterans in obtaining 

5 such loans; and 

6 ‘‘(ii) establish a database of inter7 mediaries identified under clause (i).’’. 

8 (c) OUTREACH.—The Secretary of Veterans Af9 fairs— 

10 (1) acting through vet centers, shall— 

11 (A) provide technical assistance, outreach, 

12 and counseling to veterans regarding the 

13 Microloan Program; and 

14 (B) serve as a liaison between veterans and 

15 the Administrator of the Small Business Ad16 ministration and intermediaries for purposes of 

17 the Microloan Program; and 

18 (2) evaluate the efforts of the Department of 

19 Veterans Affairs under paragraph (1). 

20 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

21 are authorized to be appropriated to the Secretary of Vet22 erans Affairs and the Administrator of the Small Business 

23 Administration such sums as may be necessary to carry 


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1 out the provisions of, and the amendments made by, this 

2 section. 

Æ 


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