II 

108TH CONGRESS 

2D SESSION S. 2849 

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 

SEPTEMBER 27, 2004 

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

to the Committee on Veterans’ Affairs 

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, 
2 

•S 2849 IS 

1 SECTION 1. EXEMPTION FROM PAYMENT OF INDIVIDUAL 

2 CONTRIBUTIONS UNDER MONTGOMERY GI 

3 BILL 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. 
3 

•S 2849 IS 

1 (d) REFUND OF CONTRIBUTIONS.—(1) In the case 

2 of any covered member of the Armed Forces whose basic 

3 pay was reduced under section 3011(b) or 3012(c) of such 

4 title for any month beginning before the date of the enact5 ment of this Act, the Secretary concerned shall pay to 

6 such covered member of the Armed Forces an amount 

7 equal to the aggregate amount of reductions of basic pay 

8 of such member of the Armed Forces under such section 

9 3011(b) or 3012(c), as applicable, as of that date. 

10 (2) Any amount paid to a covered member of the 

11 Armed Forces under paragraph (1) shall not be included 

12 in gross income under the Internal Revenue Code of 1986. 

13 (3) Amounts for payments under paragraph (1) shall 

14 be derived from amounts appropriated or otherwise made 

15 available to the Secretary concerned for military personnel 

16 in chapter 1 of title I of the Emergency Supplemental Ap17 propriations Act for Defense and for the Reconstruction 

18 of Iraq and Afghanistan, 2004 (Public Law 108–106; 117 

19 Stat. 1209). 

20 (4) In this subsection, the term ‘‘Secretary con21 cerned’’ means— 

22 (A) the Secretary of the Army, with respect to 

23 matters concerning the Army; 

24 (B) the Secretary of the Navy, with respect to 

25 matters concerning the Navy or the Marine Corps; 
4 

•S 2849 IS 

1 (C) the Secretary of the Air Force, with respect 

2 to matters concerning the Air Force; and 

3 (D) the Secretary of Homeland Security, with 

4 respect to matters concerning the Coast Guard. 

5 (e) COVERED MEMBER OF THE ARMED FORCES DE6 FINED.—In this section, the term ‘‘covered member of the 

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

8 duty as a member of the Armed Forces during the pe9 riod— 

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

11 of Executive Order 13235, relating to National 

12 Emergency Construction Authority; and 

13 (2) ending on the termination date of the Exec14 utive order referred to in paragraph (1). 

15 SEC. 2. OPPORTUNITY FOR INDIVIDUALS WHO SERVE AS 

16 ACTIVE DUTY MEMBERS OF THE ARMED 

17 FORCES UNDER EXECUTIVE ORDER 13235 TO 

18 WITHDRAW ELECTION NOT TO ENROLL IN 

19 MONTGOMERY GI BILL. 

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

21 amended— 

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

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

24 (2) by inserting after subsection (b) the fol25 lowing new subsection (c): 
5 

•S 2849 IS 

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

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

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

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

5 Armed Forces during the period beginning on No6 vember 16, 2001, and ending on the termination 

7 date of Executive Order 13235, relating to National 

8 Emergency Construction Authority; and 

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

10 without a break in service following the date the in11 dividual first becomes a member or first enters on 

12 active duty as a member of the Armed Forces, 

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

14 of Defense shall prescribe, to withdraw an election under 

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

16 education assistance under this chapter. 

17 ‘‘(2) An individual described paragraph (1) who made 

18 an election under section 3011(c)(1) or 3012(d)(1) of this 

19 title and who— 

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

21 one-year period beginning on the date of the enact22 ment of this subsection makes a withdrawal of such 

23 election; 

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

25 which such individual was obligated to serve; 
6 

•S 2849 IS 

1 ‘‘(C) serves the obligated period of service de2 scribed in subparagraph (B) or before completing 

3 such obligated period of service is described by sub4 section (b)(3)(B); and 

5 ‘‘(D) meets the requirements set forth in para6 graphs (4) and (5) of subsection (b), 

7 is entitled to basic educational assistance under this chap8 ter.’’; and 

9 (3) in subsection (e), as so redesignated, by in10 serting ‘‘or (c)(2)(A)’’ after ‘‘(b)(1)’’. 

Æ