I 
109TH CONGRESS 
1ST SESSION 
H. R. 786 
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 HOUSE OF REPRESENTATIVES 
FEBRUARY 10, 2005 
Mr. TERRY introduced the following bill; which was referred to the Committee 
on Veterans’ Affairs, and in addition to the Committee on Armed Serv-
ices, for a period to be subsequently determined by the Speaker, in each 
case for consideration of such provisions as fall within the jurisdiction of 
the committee concerned 
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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘GI Bill Enhancement 
Act of 2005’’.
SEC. 2. EXEMPTION FROM PAYMENT OF INDIVIDUAL CON-
TRIBUTIONS UNDER MONTGOMERY GI BILL 
OF INDIVIDUALS WHO SERVE AS ACTIVE 
DUTY MEMBERS OF THE ARMED FORCES 
UNDER EXECUTIVE ORDER 13235. 
(a) ACTIVE DUTY PROGRAM.—Notwithstanding sec-
tion 3011(b) of title 38, United States Code, no reduction 
in basic pay otherwise required by such section shall be 
made in the case of a covered member of the Armed 
Forces. 
(b) 
SELECTED
RESERVE
PROGRAM.—Notwith-
standing section 3012(c) of such title, no reduction in 
basic pay otherwise required by such section shall be made 
in the case of a covered member of the Armed Forces. 
(c) TERMINATION
OF ON-GOING REDUCTIONS
IN 
BASIC PAY.—In the case of a covered member of the 
Armed Forces who first became a member of the Armed 
Forces or first entered on active duty as a member of the 
Armed Forces before the date of the enactment of this 
Act and whose basic pay would, but for subsection (a) or 
(b) of this section, be subject to reduction under section 
3011(b) or 3012(c) of such title for any month beginning 
on or after that date, the reduction of basic pay of such 
covered member of the Armed Forces under such section 
3011(b) or 3012(c), as applicable, shall cease commencing 
with the first month beginning on or after that date.
(d) REFUND OF CONTRIBUTIONS.—(1) In the case 
of any covered member of the Armed Forces whose basic 
pay was reduced under section 3011(b) or 3012(c) of such 
title for any month beginning before the date of the enact-
ment of this Act, the Secretary concerned shall pay to 
such covered member of the Armed Forces an amount 
equal to the aggregate amount of reductions of basic pay 
of such member of the Armed Forces under such section 
3011(b) or 3012(c), as applicable, as of that date. 
(2) Any amount paid to a covered member of the 
Armed Forces under paragraph (1) shall not be included 
in gross income under the Internal Revenue Code of 1986. 
(3) Amounts for payments made by a Secretary con-
cerned under paragraph (1) during fiscal year 2005 shall 
be derived from amounts made available for such fiscal 
year in an Act making supplemental appropriations for de-
fense and the reconstruction of Iraq. 
(4) In this subsection, the term ‘‘Secretary con-
cerned’’ means— 
(A) the Secretary of the Army, with respect to 
matters concerning the Army; 
(B) the Secretary of the Navy, with respect to 
matters concerning the Navy or the Marine Corps; 
(C) the Secretary of the Air Force, with respect 
to matters concerning the Air Force; and
(D) the Secretary of Homeland Security, with 
respect to matters concerning the Coast Guard. 
(e) COVERED MEMBER OF THE ARMED FORCES DE-
FINED.—In this section, the term ‘‘covered member of the 
Armed Forces’’ means any individual who serves on active 
duty as a member of the Armed Forces during the pe-
riod— 
(1) beginning on November 16, 2001, the date 
of Executive Order 13235, relating to National 
Emergency Construction Authority; and 
(2) ending on the termination date of the Exec-
utive order referred to in paragraph (1). 
SEC. 3. OPPORTUNITY FOR INDIVIDUALS WHO SERVE AS 
ACTIVE DUTY MEMBERS OF THE ARMED 
FORCES UNDER EXECUTIVE ORDER 13235 TO 
WITHDRAW ELECTION NOT TO ENROLL IN 
MONTGOMERY GI BILL. 
Section 3018 of title 38, United States Code, is 
amended— 
(1) by redesignating subsections (c) and (d) as 
subsection (d) and (e), respectively; 
(2) by inserting after subsection (b) the fol-
lowing new subsection (c):
‘‘(c)(1) Notwithstanding any other provision of this 
chapter, during the one-year period beginning on the date 
of the enactment of this subsection, an individual who— 
‘‘(A) serves on active duty as a member of the 
Armed Forces during the period beginning on No-
vember 16, 2001, and ending on the termination 
date of Executive Order 13235, relating to National 
Emergency Construction Authority; and 
‘‘(B) has served continuously on active duty 
without a break in service following the date the in-
dividual first becomes a member or first enters on 
active duty as a member of the Armed Forces, 
shall have the opportunity, on such form as the Secretary 
of Defense shall prescribe, to withdraw an election under 
section 3011(c)(1) or 3012(d)(1) of this title not to receive 
education assistance under this chapter. 
‘‘(2) An individual described paragraph (1) who made 
an election under section 3011(c)(1) or 3012(d)(1) of this 
title and who— 
‘‘(A) while serving on active duty during the 
one-year period beginning on the date of the enact-
ment of this subsection makes a withdrawal of such 
election; 
‘‘(B) continues to serve the period of service 
which such individual was obligated to serve;
‘‘(C) serves the obligated period of service de-
scribed in subparagraph (B) or before completing 
such obligated period of service is described by sub-
section (b)(3)(B); and 
‘‘(D) meets the requirements set forth in para-
graphs (4) and (5) of subsection (b), 
is entitled to basic educational assistance under this chap-
ter.’’; and 
(3) in subsection (e), as so redesignated, by in-
serting ‘‘or (c)(2)(A)’’ after ‘‘(b)(1)’’. 
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