II 

108TH CONGRESS 

2D SESSION S. 2534 

To amend title 38, United States Code, to extend and enhance benefits 

under the Montgomery GI Bill, to improve housing benefits for veterans, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 16, 2004 

Mr. GRAHAM of Florida 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 extend and enhance benefits under the Montgomery GI Bill, to improve 

housing benefits for veterans, 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 for the 21st Century Act’’. 
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1 SEC. 2. EXCLUSION OF BASIC PAY CONTRIBUTIONS FOR 

2 PARTICIPATION IN BASIC EDUCATIONAL AS3 SISTANCE IN CERTAIN COMPUTATIONS ON 

4 STUDENT FINANCIAL AID. 

5 (a) EXCLUSION.—Subchapter II of chapter 30 of title 

6 38, United States Code, is amended by adding at the end 

7 the following new section: 

8 ‘‘§ 3020A. Exclusion of basic pay contributions in cer9 tain computations on student financial 

10 aid 

11 ‘‘(a) IN GENERAL.—The expected family contribution 

12 computed under section 475, 476, or 477 of the Higher 

13 Education Act of 1965 (20 U.S.C. 1087oo, 1087pp, 

14 1087qq) for a covered student shall be decreased by 

15 $1,200 for the applicable year. 

16 ‘‘(b) DEFINITIONS.—In this section: 

17 ‘‘(1) The term ‘academic year’ has the meaning 

18 given the term in section 481(a)(2) of the Higher 

19 Education Act of 1965 (20 U.S.C. 1088(a)(2)). 

20 ‘‘(2) The term ‘applicable year’ means the first 

21 academic year for which a student uses entitlement 

22 to basic educational assistance under this chapter. 

23 ‘‘(3) The term ‘covered student’ means any in24 dividual entitled to basic educational assistance 

25 under this chapter whose basic pay or voluntary sep26 aration incentives was or were subject to reduction 
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1 under section 3011(b), 3012(c), 3018(c), 3018A(b), 

2 or 3018B(b) of this title.’’. 

3 (b) CLERICAL AMENDMENT.—The table of sections 

4 at the beginning of such chapter is amended by inserting 

5 after the item relating to section 3020 the following new 

6 item: 

‘‘3020A. Exclusion of basic pay contributions in certain computations on student 

financial aid.’’. 

7 SEC. 3. OPPORTUNITY FOR ENROLLMENT IN BASIC EDU8 CATIONAL ASSISTANCE PROGRAM OF CER9 TAIN INDIVIDUALS WHO PARTICIPATED OR 

10 WERE ELIGIBLE TO PARTICIPATE IN POST11 VIETNAM ERA VETERANS EDUCATIONAL AS12 SISTANCE PROGRAM. 

13 (a) OPPORTUNITY FOR ENROLLMENT.—Section 

14 3018C(e) of title 38, United States Code, is amended— 

15 (1) in paragraph (1), by inserting ‘‘or (3)’’ 

16 after ‘‘paragraph (2)’’; 

17 (2) by redesignating paragraphs (3), (4), and 

18 (5) as paragraphs (4), (5), and (6), respectively; 

19 (3) by inserting after paragraph (2) the fol20 lowing new paragraph (3): 

21 ‘‘(3) A qualified individual referred to in paragraph 

22 (1) is also an individual who meets each of the following 

23 requirements: 
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1 ‘‘(A) The individual is a participant in the edu2 cational benefits program under chapter 32 of this 

3 title as of the date of the enactment of the Mont4 gomery GI Bill for the 21st Century Act, or was eli5 gible to participate in such program, but had not 

6 participated in that program or any other edu7 cational benefits program under this title, as of that 

8 date. 

9 ‘‘(B) The individual meets the requirements of 

10 subsection (a)(3). 

11 ‘‘(C) The individual, when discharged or re12 leased from active duty, is discharged or released 

13 therefrom with an honorable discharge.’’; 

14 (4) in paragraph (5), as so redesignated, by 

15 striking ‘‘paragraph (3)(A)(ii)’’ and inserting ‘‘para16 graph (4)(A)(ii)’’; and 

17 (5) in paragraph (6), as so redesignated, by in18 serting ‘‘, or individuals eligible to participate in 

19 that program who have not participated in that pro20 gram or any other educational benefits program 

21 under this title,’’ after ‘‘chapter 32 of this title’’. 

22 (b) CONFORMING AND CLERICAL AMENDMENTS.— 

23 (1) The heading of such section is amended to read as 

24 follows: 
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1 ‘‘§ 3018C. Opportunity to enroll: certain VEAP par2 ticipants; certain individuals eligible for 

3 participation in VEAP’’. 

4 (2) The table of sections at the beginning of chapter 

5 30 of such title is amended by striking the item relating 

6 to section 3018C and inserting the following new item: 

‘‘3018C. Opportunity to enroll: certain VEAP participants; certain individuals 

eligible for participation in VEAP.’’. 

7 SEC. 4. COMMENCEMENT OF 10-YEAR DELIMITING PERIOD 

8 FOR VETERANS, SURVIVORS, AND DEPEND9 ENTS WHO ENROLL IN TRAINING PROGRAM. 

10 (a) VETERANS.—Section 3031 of title 38, United 

11 States Code, is amended— 

12 (1) in subsection (a), by striking ‘‘through (g), 

13 and subject to subsection (h)’’ and inserting 

14 ‘‘through (h), and subject to subsection (i)’’; 

15 (2) by redesignating subsection (h) as sub16 section (i); and 

17 (3) by inserting after subsection (g) the fol18 lowing new subsection (h): 

19 ‘‘(h) In the case of an individual eligible for edu20 cational assistance under this chapter who, during the 10- 

21 year period described in subsection (a) of this section, en22 rolls in a program of training under this chapter, the pe23 riod during which the individual may use the individual’s 

24 entitlement to educational assistance under this chapter 
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1 expires on the last day of the 10-year period beginning 

2 on the first day of the individual’s pursuit of such program 

3 of training.’’. 

4 (b) ELIGIBLE CHILDREN.—Subsection (a) of section 

5 3512 of such title is amended— 

6 (1) in paragraph (6)(B), by striking ‘‘and’’ at 

7 the end; 

8 (2) in paragraph (7), by striking the period at 

9 the end and inserting ‘‘; and’’; and 

10 (3) by adding at the end the following new 

11 paragraph: 

12 ‘‘(8) if the person enrolls in a program of spe13 cial restorative training under subchapter V of this 

14 chapter, such period shall begin on the first day of 

15 the person’s pursuit of such program of special re16 storative training.’’. 

17 (c) ELIGIBLE SURVIVING SPOUSES.—Subsection (b) 

18 of such section is amended by adding at the end the fol19 lowing new paragraph: 

20 ‘‘(3) Notwithstanding the provisions of paragraph (1) 

21 of this subsection, any eligible person (as defined in sec22 tion 3501(a)(1)(B) or (D)(ii) of this title) who, during the 

23 10-year period described in paragraph (1) of this sub24 section, enrolls in a program of special restorative training 

25 under subchapter V of this chapter may be afforded edu-
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1 cational assistance under this chapter during the 10-year 

2 period beginning on the first day of the individual’s pur3 suit of such program of special restorative training.’’. 

4 SEC. 5. AVAILABILITY OF EDUCATION BENEFITS FOR PAY5 MENT FOR NATIONAL ADMISSIONS EXAMS 

6 AND NATIONAL EXAMS FOR CREDIT AT INSTI7 TUTIONS OF HIGHER EDUCATION. 

8 (a) COVERED EXAMS.—Sections 3452(b) and 

9 3501(a)(5) of title 38, United States Code, are each 

10 amended by adding at the end the following new sentence: 

11 ‘‘Such term also includes national tests for admission to 

12 institutions of higher learning or graduate schools (such 

13 as the SAT, LSAT, GRE, and GMAT exams) and na14 tional tests providing an opportunity for course credit at 

15 institutions of higher learning (such as the AP exam).’’. 

16 (b) AMOUNT OF PAYMENT.— 

17 (1) CHAPTER 30.—Section 3032 of such title is 

18 amended by adding at the end the following new 

19 subsection: 

20 ‘‘(g)(1) Subject to paragraph (3), the amount of edu21 cational assistance payable under this chapter for a na22 tional test for admission or national test providing an op23 portunity for course credit at institutions of higher learn24 ing described in section 3452(b) of this title is the amount 

25 of the fee charged for the test. 
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1 ‘‘(2) The number of months of entitlement charged 

2 in the case of any individual for a test described in para3 graph (1) is equal to the number (including any fraction) 

4 determined by dividing the total amount of educational as5 sistance paid such individual for such test by the full-time 

6 monthly institutional rate of educational assistance, except 

7 for paragraph (1), such individual would otherwise be paid 

8 under subsection (a)(1), (b)(1), (d), or (e)(1) of section 

9 3015 of this title, as the case may be. 

10 ‘‘(3) In no event shall payment of educational assist11 ance under this subsection for a test described in para12 graph (1) exceed the amount of the individual’s available 

13 entitlement under this chapter.’’. 

14 (2) CHAPTER 32.—Section 3232 of such title is 

15 amended by adding at the end the following new 

16 subsection: 

17 ‘‘(d)(1) Subject to paragraph (3), the amount of edu18 cational assistance payable under this chapter for a na19 tional test for admission or national test providing an op20 portunity for course credit at institutions of higher learn21 ing described in section 3452(b) of this title is the amount 

22 of the fee charged for the test. 

23 ‘‘(2) The number of months of entitlement charged 

24 in the case of any individual for a test described in para25 graph (1) is equal to the number (including any fraction) 
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1 determined by dividing the total amount of educational as2 sistance paid such individual for such test by the full-time 

3 monthly institutional rate of educational assistance, except 

4 for paragraph (1), such individual would otherwise be paid 

5 under this chapter. 

6 ‘‘(3) In no event shall payment of educational assist7 ance under this subsection for a test described in para8 graph (1) exceed the amount of the individual’s available 

9 entitlement under this chapter.’’. 

10 (3) CHAPTER 34.—Section 3482 of such title is 

11 amended by adding at the end the following new 

12 subsection: 

13 ‘‘(i)(1) Subject to paragraph (3), the amount of edu14 cational assistance payable under this chapter for a na15 tional test for admission or national test providing an op16 portunity for course credit at institutions of higher learn17 ing described in section 3452(b) of this title is the amount 

18 of the fee charged for the test. 

19 ‘‘(2) The number of months of entitlement charged 

20 in the case of any individual for a test described in para21 graph (1) is equal to the number (including any fraction) 

22 determined by dividing the total amount of educational as23 sistance paid such individual for such test by the full-time 

24 monthly institutional rate of educational assistance, except 
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1 for paragraph (1), such individual would otherwise be paid 

2 under this chapter. 

3 ‘‘(3) In no event shall payment of educational assist4 ance under this subsection for a test described in para5 graph (1) exceed the amount of the individual’s available 

6 entitlement under this chapter.’’. 

7 (4) CHAPTER 35.—Section 3532 of such title is 

8 amended by adding at the end the following new 

9 subsection: 

10 ‘‘(g)(1) Subject to paragraph (3), the amount of edu11 cational assistance payable under this chapter for a na12 tional test for admission or national test providing an op13 portunity for course credit at institutions of higher learn14 ing described in section 3501(a)(5) of this title is the 

15 amount of the fee charged for the test. 

16 ‘‘(2) The number of months of entitlement charged 

17 in the case of any individual for a test described in para18 graph (1) is equal to the number (including any fraction) 

19 determined by dividing the total amount of educational as20 sistance paid such individual for such test by the full-time 

21 monthly institutional rate of educational assistance, except 

22 for paragraph (1), such individual would otherwise be paid 

23 under this chapter. 

24 ‘‘(3) In no event shall payment of educational assist25 ance under this subsection for a test described in para-
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1 graph (1) exceed the amount of the individual’s available 

2 entitlement under this chapter.’’. 

3 SEC. 6. INCREASE IN MAXIMUM AMOUNT OF HOME LOAN 

4 GUARANTY FOR CONSTRUCTION AND PUR5 CHASE OF HOMES AND ANNUAL INDEXING OF 

6 AMOUNT. 

7 (a) MAXIMUM LOAN GUARANTY BASED ON 100 PER8 CENT OF FREDDIE MAC CONFORMING LOAN RATE.—Sec9 tion 3703(a)(1) of title 38, United States Code, is amend10 ed by striking ‘‘$60,000’’ each place it appears in subpara11 graphs (A)(i)(IV) and (B) and inserting ‘‘the maximum 

12 guaranty amount (as defined in subparagraph (C))’’. 

13 (b) DEFINITION.—Such section is further amended 

14 by adding at the end the following new subparagraph: 

15 ‘‘(C) In this paragraph, the term ‘maximum guaranty 

16 amount’ means the dollar amount that is equal to 25 per17 cent of the Freddie Mac conforming loan limit limitation 

18 determined under section 305(a)(2) of the Federal Home 

19 Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)) 

20 for a single-family residence, as adjusted for the year in21 volved.’’. 

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