II 

108TH CONGRESS 

1ST SESSION S. 177

To amend title 38, United States Code, to improve benefits under the Montgomery GI Bill by establishing an enhanced educational assistance program and by repealing the requirement for reduction in pay for participation in the program, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 16, 2003

Mr. DAYTON introduced the following bill; which was read twice and referred 

to the Committee on Veterans’ Affairs 

A BILL

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

under the Montgomery GI Bill by establishing an enhanced educational assistance program and by repealing 

the requirement for reduction in pay for participation 

in the program, 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 Revitalization Act of 2003’’. 
2

•S 177 IS 

1 SEC. 2. ENHANCED BENEFITS UNDER MONTGOMERY GI 

2 BILL FOR FOUR YEARS OF ACTIVE-DUTY 

3 SERVICE. 

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

5 States Code, is amended by adding at the end the fol6 lowing new subchapter: 

7 ‘‘SUBCHAPTER V—ENHANCED EDUCA8 TIONAL ASSISTANCE 

9 ‘‘§ 3041. Enhanced educational assistance entitlement 

10 ‘‘(a) ENTITLEMENT.—An eligible individual is enti11 tled to enhanced educational assistance under this sub12 chapter. 

13 ‘‘(b) ELIGIBLE INDIVIDUAL DEFINED.—For pur14 poses of this subchapter, the term ‘eligible individual’ 

15 means an individual who meets the service requirement 

16 described in subsection (c) and whose status after comple17 tion of such service is described in section 3011(a)(2) of 

18 this title. Such term does not include an individual de19 scribed in paragraph (1) or (2) of section 3011(c) of this 

20 title. 

21 ‘‘(c) SERVICE REQUIREMENT.—(1) The service re22 quirement referred to in subsection (b) is as follows: 

23 ‘‘(A) After September 30, 2003, the indi24 vidual—

25 ‘‘(i) first enters on active duty; 
3

•S 177 IS 

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; 

17 ‘‘(II) for the convenience of the Gov18 ernment, after having completed not less 

19 than 42 months of continuous active duty; 

20 or 

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

22 of section 3011(a)(1)(A)(ii) of this title. 

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

24 following rules apply: 
4

•S 177 IS 

1 ‘‘(A) Any period of service described in para2 graph (2) or (3) of section 3011(d) of this title that 

3 applies to an eligible individual under this section 

4 shall not be considered a part of the individual’s pe5 riod of active duty. 

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

7 section 3011(f) of this title who serves the periods 

8 of active duty referred to in such paragraph shall be 

9 deemed to have served a continuous period of active 

10 duty the length of which is the aggregate length of 

11 the periods of active duty referred to in such para12 graph. 

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

14 this title apply with respect to an eligible individual 

15 under this section in the same manner as they apply 

16 to an individual under section 3011 of this title. 

17 ‘‘(d) ELECTION OF BASIC EDUCATIONAL ASSIST18 ANCE.—(1) An eligible individual entitled to enhanced 

19 educational assistance under this subchapter may elect (in 

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

21 basic educational assistance under subchapter II in lieu 

22 of such enhanced educational assistance for an enrollment 

23 period. Such an election shall be made not later than 30 

24 days before the beginning of the enrollment period.
5

•S 177 IS 

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

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

3 revocation be made later than 30 days before the begin4 ning of the enrollment period. 

5 ‘‘§ 3042. Duration of enhanced educational assistance 

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

7 title and except as provided in subsection (b), each indi8 vidual entitled to enhanced educational assistance under 

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

10 educational assistance allowance under this subchapter for 

11 a period or periods not to exceed a total of 36 months 

12 (or the equivalent thereof in part-time enhanced edu13 cational assistance). 

14 ‘‘(b) SPECIAL RULE FOR CERTAIN EARLY SEPARA15 TIONS.—Subject to section 3695 of this title, in the case 

16 of an individual described in subclause (I) or (III) of sec17 tion 3041(c)(1)(B)(ii) of this title who does not serve a 

18 continuous period of active duty of at least four years in 

19 the Armed Forces (as described in section 

20 3041(c)(1)(B)(i) of this title), the individual is entitled to 

21 one month of enhanced educational assistance benefits 

22 under this subchapter (not to exceed a total of 36 months 

23 (or the equivalent thereof in part-time enhanced edu24 cational assistance)) for each month of continuous active 

25 duty served by the individual beginning with the date on 
6

•S 177 IS 

1 which the entry on active duty, reenlistment, enlistment 

2 extension, or continuation applicable to that individual 

3 under section 3041(c)(1)(A) of this title begins. 

4 ‘‘§ 3043. Payment of educational expenses 

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

6 Secretary shall pay to the educational institution providing 

7 a course under an approved program of education to an 

8 eligible individual under this subchapter who is enrolled 

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

10 payable by the individual. 

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

12 to similarly circumstanced nonveterans. 

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

14 The Secretary shall pay to each eligible individual under 

15 this subchapter who is pursuing an approved program of 

16 education—

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

18 this title; and 

19 ‘‘(2) in accordance with regulations prescribed 

20 by the Secretary, an amount equal to the average 

21 cost of books and supplies payable by individuals 

22 pursuing courses of education at educational institu23 tions. 

24 ‘‘(c) EXCLUSION FROM INCOME FOR ELIGIBILITY

25 DETERMINATIONS FOR FEDERAL EDUCATIONAL
7

•S 177 IS 

1 LOANS.—Notwithstanding any other provision of law, 

2 amounts payable by the Secretary under this subchapter 

3 with respect to an eligible individual shall not be consid4 ered as income for purposes of determining eligibility of 

5 such individual for education grants or loans under any 

6 other provision of Federal law. 

7 ‘‘§ 3044. Amount of stipend 

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

9 3042 of this title, the stipend under this subchapter shall 

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

11 pursuant to subsection (b)) as follows: 

12 ‘‘(1) At the monthly rate of $900 for an ap13 proved program of education pursued on a full-time 

14 basis. 

15 ‘‘(2) At the monthly rate of $700 for an ap16 proved program of education pursued on a three17 quarter-time basis. 

18 ‘‘(3) At the monthly rate of $500 for an ap19 proved program of education pursued on a half-time 

20 basis. 

21 ‘‘(4) At the monthly rate of $300 for an ap22 proved program of education pursued on less than a 

23 half-time basis. 

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

25 any fiscal year beginning after fiscal year 2004, the Sec-
8

•S 177 IS 

1 retary shall increase the rate paid under subsection (a) 

2 for the previous fiscal year by the percentage applicable 

3 under section 3015(h) of this title. 

4 ‘‘§ 3045. Tutorial assistance 

5 ‘‘An individual entitled to an enhanced educational 

6 assistance allowance under this subchapter shall be enti7 tled to benefits provided an individual under section 3019 

8 of this title, subject to the conditions provided in such sec9 tion.’’. 

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

11 of such title is amended by inserting at the end the fol12 lowing new paragraph: 

13 ‘‘(9) The term ‘enhanced educational assistance’ 

14 means educational assistance provided under subchapter 

15 V.’’. 

16 (2) Section 3011 of such title is amended in sub17 section (f)(1) and (g) by striking ‘‘chapter’’ each place it 

18 appears and inserting ‘‘subchapter’’. 

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

20 striking ‘‘education assistance under this chapter’’ and in21 serting ‘‘educational assistance under this subchapter’’. 

22 (4) Section 3018B of such title is amended by strik23 ing ‘‘education assistance under this chapter’’ each place 

24 it appears and inserting ‘‘educational assistance under 

25 this subchapter’’.
9

•S 177 IS 

1 (5) Section 3018C of such title is amended by strik2 ing ‘‘educational assistance under this chapter’’ each place 

3 it appears and inserting ‘‘educational assistance under 

4 this subchapter’’. 

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

6 ‘‘chapter’’ each place it appears and inserting ‘‘sub7 chapter’’. 

8 (7) Section 3031 of such title is amended—

9 (A) in subsection (f), by inserting ‘‘or 3042 of 

10 this title’’ after ‘‘section 3013’’ each place it ap11 pears; and 

12 (B) in subsection (h), by inserting ‘‘or 

13 3031(c)(1)(B)(ii)(III)’’ after ‘‘section 

14 3011(a)(1)(A)(ii)(III)’’. 

15 (8) Section 3032(e)(3) of such title is amended by 

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

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

18 at the beginning of chapter 30 of such title is amended 

19 by adding at the end the following new 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. 

‘‘3045. Tutorial assistance.’’.
10

•S 177 IS 

1 SEC. 3. REPEAL OF PAY REDUCTION, ELECTION OF BENE2 FITS, AND HIGH SCHOOL GRADUATION RE3 QUIREMENT FOR PARTICIPATION IN BASIC 

4 EDUCATIONAL ASSISTANCE UNDER MONT5 GOMERY GI BILL. 

6 (a) REPEAL OF PAY REDUCTION AND ELECTION OF

7 BENEFITS.—

8 (1) ACTIVE DUTY PROGRAM.—(A) Section 3011 

9 of title 38, United States Code, is amended—

10 (i) by striking subsection (b); and 

11 (ii) in subsection (c), by striking paragraph 

12 (1) and redesignating paragraphs (2) and (3) 

13 as paragraphs (1) and (2), respectively. 

14 (B) Section 3012 of such title is amended—

15 (i) by striking subsection (c); and 

16 (ii) in subsection (d), by striking para17 graph (1) and redesignating paragraphs (2) and 

18 (3) as paragraphs (1) and (2), respectively. 

19 (2) OPPORTUNITIES TO WITHDRAW ELECTION

20 NOT TO ENROLL.—(A) Section 3016(a)(1) of such 

21 title is amended by striking ‘‘, and does not make 

22 an election under section 3011(c)(1) or section 

23 3012(d)(1)’’. 

24 (B) Sections 3018A and 3018B of such title 

25 are each amended by adding at the end the following 

26 new subsection: 
11

•S 177 IS 

1 ‘‘(e) Notwithstanding subsection (b), no reduction in 

2 the pay of an individual under this section shall be made 

3 for months beginning after September 30, 2003. Any obli4 gation of such individual under subsection (b) as of such 

5 date shall be deemed to be fully satisfied as of such date.’’. 

6 (C)(i) Section 3018C(e) of such title is amend7 ed—

8 (I) by striking paragraphs (3) and (4); and 

9 (II) by redesignating paragraph (5) as 

10 paragraph (3). 

11 (ii) Section 3018C of such title is amended by 

12 adding at the end the following new subsection: 

13 ‘‘(f) Notwithstanding subsection (b), no reduction in 

14 the pay of an individual under this section shall be made 

15 for months beginning after September 30, 2003. Any obli16 gation of such individual under subsection (b) as of such 

17 date shall be deemed to be fully satisfied as of such date.’’. 

18 (3) EFFECTIVE DATE.—The amendments made 

19 by this subsection shall take effect on October 1, 

20 2003, and apply to individuals whose initial obli21 gated period of active duty under section 3011 or 

22 3012 of title 38, United States Code, as the case 

23 may be, begins on or after such date. 

24 (4) TERMINATION OF PAY REDUCTIONS IN

25 PROGRESS.—Any reduction in the basic pay of an 
12

•S 177 IS 

1 individual referred to in subsection (b) of section 

2 3011 of title 38, United States Code, by reason of 

3 such subsection, or of any individual referred to in 

4 subsection (c) of section 3012 of such title by reason 

5 of such subsection, shall cease commencing with 

6 months beginning after September 30, 2003, and 

7 any obligation of such individual under such sub8 sections, as the case may be, as of such date shall 

9 be deemed to be fully satisfied as of such date. 

10 (b) REPEAL OF HIGH SCHOOL GRADUATION RE11 QUIREMENT.—

12 (1) ACTIVE DUTY.—(A) Section 3011(a) of title 

13 38, United States Code, is amended—

14 (i) by striking paragraph (2); and 

15 (ii) by redesignating paragraph (3) as 

16 paragraph (2). 

17 (B) Section 3012(a) of such title is amended—

18 (i) by striking paragraph (2); and 

19 (ii) by redesignating paragraph (3) as 

20 paragraph (2). 

21 (2) OPPORTUNITIES TO WITHDRAW ELECTION

22 NOT TO ENROLL.—(A) Section 3018(b) of such title 

23 is amended—

24 (i) by inserting ‘‘and’’ at the end of para25 graph (3)(C);
13

•S 177 IS 

1 (ii) by striking paragraph (4); and 

2 (iii) by redesignating paragraph (5) as 

3 paragraph (4). 

4 (B)(i) Section 3018A(a) of such title is amend5 ed—

6 (I) by striking paragraph (2); 

7 (II) by redesignating paragraphs (3), (4), 

8 and (5) as paragraphs (2), (3), and (4), respec9 tively; and 

10 (III) in paragraphs (3) and (4), as so re11 designated, by striking ‘‘paragraph (3) of this 

12 subsection’’ and inserting ‘‘paragraph (2)’’. 

13 (ii) Section 3018A(c) of such title is amended 

14 by striking ‘‘subsection (a)(3) of this section’’ and 

15 inserting ‘‘subsection (a)(2)’’. 

16 (iii) Section 3018A(d)(1) of such title is amend17 ed by striking ‘‘subsection (a)(4) of this subsection’’ 

18 and inserting ‘‘subsection (a)(3)’’. 

19 (C)(i) Section 3018B(a)(1) of such title is 

20 amended—

21 (I) by striking subparagraph (B); 

22 (II) by redesignating subparagraphs (C), 

23 (D), and (E) as subparagraphs (B), (C), and 

24 (D), respectively; and
14

•S 177 IS 

1 (III) in subparagraphs (C) and (D), as so 

2 redesignated, by striking ‘‘subparagraph (C) of 

3 this paragraph’’ and inserting ‘‘subparagraph 

4 (B)’’. 

5 (D)(i) Section 3018B(a)(2) of such title is 

6 amended—

7 (I) by striking subparagraph (B); 

8 (II) by redesignating subparagraphs (C), 

9 (D), and (E) as subparagraphs (B), (C), and 

10 (D), respectively;

11 (III) in subparagraph (B), as so redesig12 nated, by striking ‘‘paragraph (1)(C) of this 

13 subsection’’ and inserting ‘‘paragraph (1)(B)’’; 

14 and 

15 (IV) in subparagraphs (C) and (D), as so 

16 redesignated, by striking ‘‘subparagraph (C)’’ 

17 and inserting ‘‘subparagraph (B)’’. 

18 (ii) Section 3018B(c) of such title is amended 

19 by striking ‘‘subsection (a)(1)(C) or (a)(2)(C) of this 

20 section’’ and inserting ‘‘subsection (a)(1)(B) or 

21 (a)(2)(B)’’. 

22 (iii) Section 3018B(d)(1) of such title is amend23 ed by striking ‘‘subsection (a)(1)(D) or (a)(2)(D) of 

24 this section’’ and inserting ‘‘subsection (a)(1)(C) or 

25 (a)(2)(C)’’. 
15

•S 177 IS 

1 (E)(i) Section 3018C(a) of such title is amend2 ed—

3 (I) by striking paragraph (3); 

4 (II) by redesignating paragraphs (4) and 

5 (5) as paragraphs (3) and (4), respectively; and 

6 (III) in paragraph (3), as so redesignated, 

7 by striking ‘‘paragraph (5)’’ and inserting 

8 ‘‘paragraph (4)’’. 

9 (ii) Section 3018C(b)(2) of such title is amend10 ed by striking ‘‘subsection (a)(4)’’ and inserting 

11 ‘‘subsection (a)(3)’’. 

12 (iii) Section 3018C(c)(1) of such title is amend13 ed by striking ‘‘subsection (a)(5)’’ and inserting 

14 ‘‘subsection (a)(4)’’. 

15 (iv) Section 3018C(e)(1) of such title is amend16 ed by striking ‘‘elections made under subsection 

17 (a)(5)’’ and inserting ‘‘elections made under sub18 section (a)(4)’’. 

19 (v) Section 3018C(e)(2) of such title is amend20 ed—

21 (I) by striking subparagraph (C); and 

22 (II) by redesignating subparagraph (D) as 

23 subparagraph (C). 

24 (3) EFFECTIVE DATE.—The amendments made 

25 by this subsection shall take effect on October 1, 
16

•S 177 IS 

1 2003, and shall apply with respect to individuals ap2 plying for basic educational assistance under chapter 

3 30 of title 38, United States Code, on or after such 

4 date. 

5 (c) EDUCATION OUTREACH SERVICES TO MEMBERS

6 OF THE ARMED FORCES.—

7 (1) IN GENERAL.—Section 3034(e)(1) of title 

8 38, United States Code, is amended to read as fol9 lows: 

10 ‘‘(e)(1) Not later than one year after an individual 

11 initially enters on active duty as a member of the Armed 

12 Forces, and at such additional times as the Secretary de13 termines appropriate, the Secretary shall furnish the indi14 vidual the information described in paragraph (2).’’. 

15 (2) EFFECTIVE DATE.—The amendment made 

16 by paragraph (1) shall take effect on October 1, 

17 2003, and shall apply to individuals whose initial ob18 ligated period of active duty under section 3011 or 

19 3012 of title 38, United States Code, as the case 

20 may be, begins on or after such date.

Æ