H. R. 4546—106
Sec. 614. One-year extension of other bonus and special pay authorities.
Sec. 615. Increase in maximum rates for certain special pays, bonuses, and finan-
cial assistance for health care professionals.
Sec. 616. Assignment incentive pay.
Sec. 617. Increase in maximum rates for prior service enlistment bonus.
Sec. 618. Retention incentives for health care professionals qualified in a critical
military skill.
Subtitle C—Travel and Transportation Allowances
Sec. 621. Extension of leave travel deferral period for members performing consecu-
tive overseas tours of duty.
Sec. 622. Transportation of motor vehicles for members reported missing.
Subtitle D—Retired Pay and Survivor Benefits
Sec. 631. Permanent reduction from eight to six in number of years of reserve serv-
ice required for eligibility for retired pay for non-regular service.
Sec. 632. Increased retired pay for enlisted Reserves credited with extraordinary
heroism.
Sec. 633. Elimination of possible inversion in retired pay cost-of-living adjustment
for initial COLA computation.
Sec. 634. Technical revisions to so-called ‘‘forgotten widows’’ annuity program.
Sec. 635. Expansion of authority of Secretary of Defense to waive time limitations
on claims against the Government for military personnel benefits.
Sec. 636. Special compensation for certain combat-related disabled uniformed serv-
ices retirees.
Subtitle E—Montgomery GI Bill
Sec. 641. Time limitation for use of Montgomery GI Bill entitlement by members
of the Selected Reserve.
Sec. 642. Repayment requirements under Reserve Component Montgomery GI Bill
arising from failure to participate satisfactorily in military service to be
considered debts owed to the United States.
Sec. 643. Technical adjustments to authority for certain members to transfer edu-
cational assistance under Montgomery GI Bill to dependents.
Subtitle F—Other Matters
Sec. 651. Payment of interest on student loans.
Sec. 652. Additional authority to provide assistance for families of members of the
Armed Forces.
Sec. 653. Repeal of authority for acceptance of honoraria by personnel at certain
Department of Defense schools.
Sec. 654. Addition of definition of continental United States in title 37.
Subtitle A—Pay and Allowances
SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 2003.
(a) WAIVER OF SECTION 1009 ADJUSTMENT.—The adjustment
to become effective during fiscal year 2003 required by section
1009 of title 37, United States Code, in the rates of monthly basic
pay authorized members of the uniformed services shall not be
made.
(b) INCREASE IN BASIC PAY.—Effective on January 1, 2003,
the rates of monthly basic pay for members of the uniformed serv-
ices within each pay grade are as follows:
COMMISSIONED OFFICERS 1
Years of service computed under section 205 of title 37, United States Code
Pay
Grade
2 or less
Over 2
Over 3
Over 4
Over 6
O–10 2
$0.00
$0.00
$0.00
$0.00
$0.00
O–9 ....
0.00
0.00
0.00
0.00
0.00
O–8 ....
7,474.50
7,719.30
7,881.60
7,927.20
8,129.40
O–7 ....
6,210.90
6,499.20
6,633.00
6,739.20
6,930.90
O–6 ....
4,603.20
5,057.10
5,388.90
5,388.90
5,409.60
H. R. 4546—107
COMMISSIONED OFFICERS 1—Continued
Years of service computed under section 205 of title 37, United States Code
Pay
Grade
2 or less
Over 2
Over 3
Over 4
Over 6
O–5 ....
3,837.60
4,323.00
4,622.40
4,678.50
4,864.80
O–4 ....
3,311.10
3,832.80
4,088.70
4,145.70
4,383.00
O–3 3
2,911.20
3,300.30
3,562.20
3,883.50
4,069.50
O–2 3
2,515.20
2,864.70
3,299.40
3,410.70
3,481.20
O–1 3
2,183.70
2,272.50
2,746.80
2,746.80
2,746.80
Over 8
Over 10
Over 12
Over 14
Over 16
O–10 2
$0.00
$0.00
$0.00
$0.00
$0.00
O–9 ....
0.00
0.00
0.00
0.00
0.00
O–8 ....
8,468.70
8,547.30
8,868.90
8,961.30
9,238.20
O–7 ....
7,120.80
7,340.40
7,559.40
7,779.00
8,468.70
O–6 ....
5,641.20
5,672.10
5,672.10
5,994.60
6,564.30
O–5 ....
4,977.00
5,222.70
5,403.00
5,635.50
5,991.90
O–4 ....
4,637.70
4,954.50
5,201.40
5,372.70
5,471.10
O–3 3
4,273.50
4,405.80
4,623.30
4,736.10
4,736.10
O–2 3
3,481.20
3,481.20
3,481.20
3,481.20
3,481.20
O–1 3
2,746.80
2,746.80
2,746.80
2,746.80
2,746.80
Over 18
Over 20
Over 22
Over 24
Over 26
O–10 2
$0.00
$12,077.70
$12,137.10
$12,389.40
$12,829.20
O–9 ....
0.00
10,563.60
10,715.70
10,935.60
11,319.60
O–8 ....
9,639.00
10,008.90
10,255.80
10,255.80
10,255.80
O–7 ....
9,051.30
9,051.30
9,051.30
9,051.30
9,096.90
O–6 ....
6,898.80
7,233.30
7,423.50
7,616.10
7,989.90
O–5 ....
6,161.70
6,329.10
6,519.60
6,519.60
6,519.60
O–4 ....
5,528.40
5,528.40
5,528.40
5,528.40
5,528.40
O–3 3
4,736.10
4,736.10
4,736.10
4,736.10
4,736.10
O–2 3
3,481.20
3,481.20
3,481.20
3,481.20
3,481.20
O–1 3
2,746.80
2,746.80
2,746.80
2,746.80
2,746.80
1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for
commissioned officers in pay grades 0–7 through O–10 may not exceed the rate of pay for level
III of the Executive Schedule and the actual rate of basic pay for all other officers may not ex-
ceed the rate of pay for level V of the Executive Schedule.
2 Subject to the preceding footnote, the rate of basic pay for an officer in this grade while
serving as Chairman or Vice Chairman of the Joint Chiefs of Staff, Chief of Staff of the Army,
Chief of Naval Operations, Chief of Staff of the Air Force, Commandant of the Marine Corps,
or Commandant of the Coast Guard is $14,155.50, regardless of cumulative years of service
computed under section 205 of title 37, United States Code.
3 This table does not apply to commissioned officers in pay grade O–1, O–2, or O–3 who have
been credited with over 4 years of active duty service as an enlisted member or warrant offi-
cer.
COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY
SERVICE AS AN ENLISTED MEMBER OR WARRANT OFFICER
Years of service computed under section 205 of title 37, United States Code
Pay
Grade
2 or less
Over 2
Over 3
Over 4
Over 6
O–3E
$0.00
$0.00
$0.00
$3,883.50
$4,069.50
O–2E
0.00
0.00
0.00
3,410.70
3,481.20
O–1E
0.00
0.00
0.00
2,746.80
2,933.70
Over 8
Over 10
Over 12
Over 14
Over 16
O–3E
$4,273.50
$4,405.80
$4,623.30
$4,806.30
$4,911.00
O–2E
3,591.90
3,778.80
3,923.40
4,031.10
4,031.10
H. R. 4546—108
COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY
SERVICE AS AN ENLISTED MEMBER OR WARRANT OFFICER—
Continued
Years of service computed under section 205 of title 37, United States Code
Pay
Grade
2 or less
Over 2
Over 3
Over 4
Over 6
O–1E
3,042.00
3,152.70
3,261.60
3,410.70
3,410.70
Over 18
Over 20
Over 22
Over 24
Over 26
O–3E
$5,054.40
$5,054.40
$5,054.40
$5,054.40
$5,054.40
O–2E
4,031.10
4,031.10
4,031.10
4,031.10
4,031.10
O–1E
3,410.70
3,410.70
3,410.70
3,410.70
3,410.70
WARRANT OFFICERS 1
Years of service computed under section 205 of title 37, United States Code
Pay
Grade
2 or less
Over 2
Over 3
Over 4
Over 6
W–5 ...
$0.00
$0.00
$0.00
$0.00
$0.00
W–4 ...
3,008.10
3,236.10
3,329.10
3,420.60
3,578.10
W–3 ...
2,747.10
2,862.00
2,979.30
3,017.70
3,141.00
W–2 ...
2,416.50
2,554.50
2,675.10
2,763.00
2,838.30
W–1 ...
2,133.90
2,308.50
2,425.50
2,501.10
2,662.50
Over 8
Over 10
Over 12
Over 14
Over 16
W–5 ...
$0.00
$0.00
$0.00
$0.00
$0.00
W–4 ...
3,733.50
3,891.00
4,044.60
4,203.60
4,356.00
W–3 ...
3,281.70
3,467.40
3,580.50
3,771.90
3,915.60
W–2 ...
2,993.10
3,148.50
3,264.00
3,376.50
3,453.90
W–1 ...
2,782.20
2,888.40
3,006.90
3,085.20
3,203.40
Over 18
Over 20
Over 22
Over 24
Over 26
W–5 ...
$0.00
$5,169.30
$5,346.60
$5,524.50
$5,703.30
W–4 ...
4,512.00
4,664.40
4,822.50
4,978.20
5,137.50
W–3 ...
4,058.40
4,201.50
4,266.30
4,407.00
4,548.00
W–2 ...
3,579.90
3,705.90
3,831.00
3,957.30
3,957.30
W–1 ...
3,320.70
3,409.50
3,409.50
3,409.50
3,409.50
1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for
warrant officers may not exceed the rate of pay for level V of the Executive Schedule.
ENLISTED MEMBERS 1
Years of service computed under section 205 of title 37, United States Code
Pay
Grade
2 or less
Over 2
Over 3
Over 4
Over 6
E–9 2 ..
$0.00
$0.00
$0.00
$0.00
$0.00
E–8 ....
0.00
0.00
0.00
0.00
0.00
E–7 ....
2,068.50
2,257.80
2,343.90
2,428.20
2,516.40
E–6 ....
1,770.60
1,947.60
2,033.70
2,117.10
2,204.10
E–5 ....
1,625.40
1,733.70
1,817.40
1,903.50
2,037.00
E–4 ....
1,502.70
1,579.80
1,665.30
1,749.30
1,824.00
E–3 ....
1,356.90
1,442.10
1,528.80
1,528.80
1,528.80
E–2 ....
1,290.00
1,290.00
1,290.00
1,290.00
1,290.00
E–1 ....
3 1,150.80
1,150.80
1,150.80
1,150.80
1,150.80
H. R. 4546—109
ENLISTED MEMBERS 1—Continued
Years of service computed under section 205 of title 37, United States Code
Pay
Grade
2 or less
Over 2
Over 3
Over 4
Over 6
Over 8
Over 10
Over 12
Over 14
Over 16
E–9 2 ..
$0.00
$3,564.30
$3,645.00
$3,747.00
$3,867.00
E–8 ....
2,975.40
3,061.20
3,141.30
3,237.60
3,342.00
E–7 ....
2,667.90
2,753.40
2,838.30
2,990.40
3,066.30
E–6 ....
2,400.90
2,477.40
2,562.30
2,636.70
2,663.10
E–5 ....
2,151.90
2,236.80
2,283.30
2,283.30
2,283.30
E–4 ....
1,824.00
1,824.00
1,824.00
1,824.00
1,824.00
E–3 ....
1,528.80
1,528.80
1,528.80
1,528.80
1,528.80
E–2 ....
1,290.00
1,290.00
1,290.00
1,290.00
1,290.00
E–1 ....
1,150.80
1,150.80
1,150.80
1,150.80
1,150.80
Over 18
Over 20
Over 22
Over 24
Over 26
E–9 2 ..
$3,987.30
$4,180.80
$4,344.30
$4,506.30
$4,757.40
E–8 ....
3,530.10
3,625.50
3,787.50
3,877.50
4,099.20
E–7 ....
3,138.60
3,182.70
3,331.50
3,427.80
3,671.40
E–6 ....
2,709.60
2,709.60
2,709.60
2,709.60
2,709.60
E–5 ....
2,283.30
2,283.30
2,283.30
2,283.30
2,283.30
E–4 ....
1,824.00
1,824.00
1,824.00
1,824.00
1,824.00
E–3 ....
1,528.80
1,528.80
1,528.80
1,528.80
1,528.80
E–2 ....
1,290.00
1,290.00
1,290.00
1,290.00
1,290.00
E–1 ....
1,150.80
1,150.80
1,150.80
1,150.80
1,150.80
1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for
enlisted members may not exceed the rate of pay for level V of the Executive Schedule.
2 Subject to the preceding footnote, the rate of basic pay for an enlisted member in this grade
while serving as Sergeant Major of the Army, Master Chief Petty Officer of the Navy, Chief
Master Sergeant of the Air Force, Sergeant Major of the Marine Corps, or Master Chief Petty
Officer of the Coast Guard, basic pay is $5,732.70, regardless of cumulative years of service
computed under section 205 of title 37, United States Code.
3 In the case of members in pay grade E–1 who have served less than 4 months on active
duty, the rate of basic pay is $1,064.70.
SEC. 602. BASIC ALLOWANCE FOR HOUSING IN CASES OF LOW-COST
OR NO-COST MOVES.
Section 403 of title 37, United States Code, is amended—
(1) by transferring paragraph (7) of subsection (b) to the
end of the section; and
(2) in such paragraph—
(A) by striking ‘‘(7)’’ and all that follows through ‘‘cir-
cumstances of which make it necessary that the member
be’’ and inserting ‘‘(o) TREATMENT OF LOW-COST AND NO-
COST MOVES AS NOT BEING REASSIGNMENTS.—In the case
of a member who is assigned to duty at a location or
under circumstances that make it necessary for the member
to be’’; and
(B) by inserting ‘‘for the purposes of this section’’ after
‘‘may be treated’’.
SEC. 603. RATE OF BASIC ALLOWANCE FOR SUBSISTENCE FOR
ENLISTED PERSONNEL OCCUPYING SINGLE GOVERN-
MENT QUARTERS WITHOUT ADEQUATE AVAILABILITY OF
MEALS.
Section 402(d) of title 37, United States Code, is amended
to read as follows:
H. R. 4546—110
‘‘(d) SPECIAL RATE FOR ENLISTED MEMBERS OCCUPYING SINGLE
QUARTERS WITHOUT ADEQUATE AVAILABILITY OF MEALS.—The Sec-
retary of Defense, and the Secretary of the department in which
the Coast Guard is operating, may pay an enlisted member the
basic allowance for subsistence under this section at a monthly
rate that is twice the amount in effect under subsection (b)(2)
while—
‘‘(1) the member is assigned to single Government quarters
which have no adequate food storage or preparation facility
in the quarters; and
‘‘(2) there is no Government messing facility serving those
quarters that is capable of making meals available to the occu-
pants of the quarters.’’.
Subtitle B—Bonuses and Special and
Incentive Pays
SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL
PAY AUTHORITIES FOR RESERVE FORCES.
(a) SELECTED RESERVE REENLISTMENT BONUS.—Section 308b(f )
of title 37, United States Code, is amended by striking ‘‘December
31, 2002’’ and inserting ‘‘December 31, 2003’’.
(b) SELECTED RESERVE ENLISTMENT BONUS.—Section 308c(e)
of such title is amended by striking ‘‘December 31, 2002’’ and
inserting ‘‘December 31, 2003’’.
(c) SPECIAL PAY FOR ENLISTED MEMBERS ASSIGNED TO CERTAIN
HIGH PRIORITY UNITS.—Section 308d(c) of such title is amended
by striking ‘‘December 31, 2002’’ and inserting ‘‘December 31, 2003’’.
(d) SELECTED RESERVE AFFILIATION BONUS.—Section 308e(e)
of such title is amended by striking ‘‘December 31, 2002’’ and
inserting ‘‘December 31, 2003’’.
(e) READY RESERVE ENLISTMENT AND REENLISTMENT BONUS.—
Section 308h(g) of such title is amended by striking ‘‘December
31, 2002’’ and inserting ‘‘December 31, 2003’’.
(f) PRIOR SERVICE ENLISTMENT BONUS.—Section 308i(f ) of such
title is amended by striking ‘‘December 31, 2002’’ and inserting
‘‘December 31, 2003’’.
SEC. 612. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL
PAY AUTHORITIES FOR CERTAIN HEALTH CARE PROFES-
SIONALS.
(a) NURSE OFFICER CANDIDATE ACCESSION PROGRAM.—Section
2130a(a)(1) of title 10, United States Code, is amended by striking
‘‘December 31, 2002’’ and inserting ‘‘December 31, 2003’’.
(b) REPAYMENT OF EDUCATION LOANS FOR CERTAIN HEALTH
PROFESSIONALS WHO SERVE IN THE SELECTED RESERVE.—Section
16302(d) of such title is amended by striking ‘‘January 1, 2003’’
and inserting ‘‘January 1, 2004’’.
(c) ACCESSION
BONUS
FOR
REGISTERED
NURSES.—Section
302d(a)(1) of title 37, United States Code, is amended by striking
‘‘December 31, 2002’’ and inserting ‘‘December 31, 2003’’.
(d) INCENTIVE SPECIAL PAY FOR NURSE ANESTHETISTS.—Section
302e(a)(1) of such title is amended by striking ‘‘December 31, 2002’’
and inserting ‘‘December 31, 2003’’.
(e) SPECIAL PAY
FOR SELECTED RESERVE HEALTH PROFES-
SIONALS
IN
CRITICALLY
SHORT
WARTIME
SPECIALTIES.—Section
H. R. 4546—112
(f) INCENTIVE SPECIAL PAY FOR NURSE ANESTHETISTS.—Section
302e(a)(1) of such title is amended by striking ‘‘$15,000’’ and
inserting ‘‘$50,000’’.
(g) RETENTION SPECIAL PAY FOR PHARMACY OFFICERS.—Section
302i of such title is amended—
(1) in subsections (a) and (b), by striking ‘‘special pay
at the rates specified in subsection (d)’’ both places it appears
and inserting ‘‘retention special pay under this section’’;
(2) in subsection (c), by striking ‘‘LIMITATION.—’’ and
inserting ‘‘LIMITATION
ON ELIGIBILITY
FOR SPECIAL PAY.—’’;
and
(3) by striking subsection (d) and inserting the following
new subsection:
‘‘(d) LIMITATION ON AMOUNT OF SPECIAL PAY.—The amount
of retention special pay paid to an officer under this section may
not exceed $15,000 for any 12-month period.’’.
(h) FINANCIAL ASSISTANCE FOR NURSE OFFICER CANDIDATES.—
Section 2130a(a) of title 10, United States Code, is amended—
(1) in paragraph (1), by striking ‘‘$5,000’’ in the first sen-
tence and inserting ‘‘$10,000’’ and by striking ‘‘$2,500’’ in the
second sentence and inserting ‘‘$5,000’’; and
(2) in paragraph (2), by striking ‘‘$500’’ and inserting
‘‘$1,000’’.
(i) APPLICATION OF INCREASE.—In the case of an amendment
made by this section to increase the maximum amount of a special
pay or bonus that may be paid during any 12-month period, the
amended limitation shall apply to 12-month periods beginning after
September 30, 2002.
SEC. 616. ASSIGNMENT INCENTIVE PAY.
(a) AUTHORITY.—(1) Chapter 5 of title 37, United States Code,
is amended by inserting after section 307 the following new section:
‘‘§ 307a. Special pay: assignment incentive pay
‘‘(a) AUTHORITY.—The Secretary concerned may pay monthly
incentive pay under this section to a member of a uniformed service
who performs service, while entitled to basic pay, in an assignment
designated by the Secretary concerned.
‘‘(b) WRITTEN AGREEMENT.—The period for which incentive pay
will be provided under this section and the monthly rate of the
incentive pay for a member shall be specified in a written agreement
between the Secretary concerned and the member. Agreements
entered into by the Secretary of a military department shall require
the concurrence of the Secretary of Defense.
‘‘(c) MAXIMUM RATE.—The maximum monthly rate of incentive
pay payable to a member under this section is $1,500.
‘‘(d) RELATIONSHIP TO OTHER PAY AND ALLOWANCES.—Incentive
pay paid to a member under this section is in addition to any
other pay and allowances to which the member is entitled.
‘‘(e) STATUS NOT AFFECTED BY TEMPORARY DUTY OR LEAVE.—
The service of a member in an assignment referred to in subsection
(a) shall not be considered discontinued during any period that
the member is not performing service in the assignment by reason
of temporary duty performed by the member pursuant to orders
or absence of the member for authorized leave.
‘‘(f) TERMINATION OF AUTHORITY.—No agreement under this
section may be entered into after December 31, 2005.’’.
H. R. 4546—113
(2) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section 307
the following new item:
‘‘307a. Special pay: assignment incentive pay.’’.
(b) ANNUAL REPORT.—Not later than February 28, 2004, and
February 28, 2005, the Secretary of Defense shall submit to the
Committee on Armed Services of the Senate and the Committee
on Armed Services of the House of Representatives a report on
the use of the authority provided under section 307a of title 37,
United States Code, as added by subsection (a), including an assess-
ment of the utility of that authority.
SEC. 617. INCREASE IN MAXIMUM RATES FOR PRIOR SERVICE ENLIST-
MENT BONUS.
Section 308i(b)(1) of title 37, United States Code, is amended—
(1) in subparagraph (A), by striking ‘‘$5,000’’ and inserting
‘‘$8,000’’;
(2) in subparagraph (B), by striking ‘‘$2,500’’ and inserting
‘‘$4,000’’; and
(3) in subparagraph (C), by striking ‘‘$2,000’’ and inserting
‘‘$3,500’’.
SEC. 618. RETENTION INCENTIVES FOR HEALTH CARE PROFES-
SIONALS QUALIFIED IN A CRITICAL MILITARY SKILL.
(a) EXCEPTION TO LIMITATION ON MAXIMUM BONUS AMOUNT.—
Subsection (d) of section 323 of title 37, United States Code, is
amended—
(1) by inserting ‘‘(1)’’ before ‘‘A member’’; and
(2) by adding at the end the following new paragraph:
‘‘(2) The limitation in paragraph (1) on the total bonus payments
that a member may receive under this section does not apply
with respect to an officer who is assigned duties as a health care
professional.’’.
(b) EXCEPTION TO YEARS OF SERVICE LIMITATION.—Subsection
(e) of such section is amended—
(1) by redesignating paragraphs (1) and (2) as subpara-
graphs (A) and (B), respectively;
(2) by inserting ‘‘(1)’’ before ‘‘A retention’’; and
(3) by adding at the end the following new paragraph:
‘‘(2) The limitations in paragraph (1) do not apply with respect
to an officer who is assigned duties as a health care professional
during the period of active duty for which the bonus is being
offered.’’.
Subtitle C—Travel and Transportation
Allowances
SEC. 621. EXTENSION OF LEAVE TRAVEL DEFERRAL PERIOD FOR MEM-
BERS PERFORMING CONSECUTIVE OVERSEAS TOURS OF
DUTY.
(a) AUTHORIZED DEFERRAL PERIOD.—Section 411b of title 37,
United States Code is amended by inserting after subsection (a)
the following new subsection:
‘‘(b) AUTHORITY TO DEFER TRAVEL; LIMITATIONS.—(1) Under
the regulations referred to in subsection (a), a member may defer
H. R. 4546—114
the travel for which the member is paid travel and transportation
allowances under this section until any time before the completion
of the consecutive tour at the same duty station or the completion
of the tour of duty at the new duty station under the order involved,
as the case may be.
‘‘(2) If a member is unable to undertake the travel before
expiration of the deferral period under paragraph (1) because of
duty in connection with a contingency operation, the member may
defer the travel until not more than one year after the date on
which the member’s duty in connection with the contingency oper-
ation ends.’’.
(b) CONFORMING AND CLERICAL AMENDMENTS.—Such section
is further amended—
(1) in subsection (a)—
(A) by striking ‘‘(a)(1)’’ and inserting ‘‘(a) ALLOWANCES
AUTHORIZED.—’’; and
(B) by striking paragraph (2); and
(2) by striking ‘‘(b) The allowances’’ and inserting ‘‘(c)
LIMITATION ON ALLOWANCE RATE.—The allowances’’.
(c) APPLICATION OF AMENDMENT.—Subsection (b) of section 411b
of title 37, United States Code, as added by subsection (a), shall
apply with respect to members of the uniformed services in a
deferred leave travel status under such section as of the date
of the enactment of this Act or becomes entitled to travel and
transportation allowances under such section on or after that date.
SEC. 622. TRANSPORTATION OF MOTOR VEHICLES FOR MEMBERS
REPORTED MISSING.
(a) AUTHORITY TO SHIP TWO MOTOR VEHICLES.—Subsection
(a) of section 554 of title 37, United States Code, is amended
by striking ‘‘one privately owned motor vehicle’’ both places it
appears and inserting ‘‘two privately owned motor vehicles’’.
(b) PAYMENTS FOR LATE DELIVERY.—Subsection (i) of such sec-
tion is amended by adding at the end the following new sentence:
‘‘In a case in which two motor vehicles of a member (or the
dependent or dependents of a member) are transported at the
expense of the United States, no reimbursement is payable under
this subsection unless both motor vehicles do not arrive at the
authorized destination of the vehicles by the designated delivery
date.’’.
(c) APPLICABILITY.—The amendments made by subsection (a)
shall apply with respect to members whose eligibility for benefits
under section 554 of title 37, United States Code, commences on
or after the date of the enactment of this Act.
Subtitle D—Retired Pay and Survivor
Benefits
SEC. 631. PERMANENT REDUCTION FROM EIGHT TO SIX IN NUMBER
OF YEARS OF RESERVE SERVICE REQUIRED FOR ELIGI-
BILITY FOR RETIRED PAY FOR NON-REGULAR SERVICE.
(a) REDUCTION IN REQUIREMENT FOR YEARS OF RESERVE COMPO-
NENT SERVICE BEFORE RETIRED PAY ELIGIBILITY.—Subsection (a)(3)
of section 12731 of title 10, United States Code, is amended—
(1) by striking ‘‘eight years’’ and inserting ‘‘six years’’; and
H. R. 4546—115
(2) by inserting before the semicolon ‘‘, except that in
the case of a person who completed the service requirements
of paragraph (2) before October 5, 1994, the number of years
of such qualifying service under this paragraph shall be eight’’.
(b) CONFORMING AMENDMENT.—Subsection (f) of such section
is repealed.
(c) EFFECTIVE DATE.—The amendments made by subsection
(a) shall take effect on October 1, 2002. No benefit shall accrue
to any person for any period before that date by reason of the
enactment of those amendments.
SEC. 632. INCREASED RETIRED PAY FOR ENLISTED RESERVES CRED-
ITED WITH EXTRAORDINARY HEROISM.
(a) AUTHORITY.—Section 12739 of title 10, United States Code,
is amended—
(1) by redesignating subsections (b) and (c) as subsections
(c) and (d), respectively; and
(2) by inserting after subsection (a) the following new sub-
section (b):
‘‘(b) If a person entitled to retired pay under this chapter
has been credited by the Secretary concerned with extraordinary
heroism in the line of duty and if the highest grade held satisfac-
torily by that person at any time in the armed forces is an enlisted
grade, the person’s retired pay shall be increased by 10 percent
of the amount determined under subsection (a). The Secretary’s
determination as to extraordinary heroism is conclusive for all
purposes.’’.
(b) CONFORMING AMENDMENT.—Subsection (c) of such section,
as redesignated by subsection (a)(1), is amended by striking
‘‘amount computed under subsection (a)’’ and inserting ‘‘total
amount of the monthly retired pay computed under subsections
(a) and (b)’’.
(c) EFFECTIVE DATE.—The amendments made by subsections
(a) and (b) shall take effect on October 1, 2002, and shall apply
with respect to retired pay for months beginning on or after that
date.
SEC. 633. ELIMINATION OF POSSIBLE INVERSION IN RETIRED PAY
COST-OF-LIVING ADJUSTMENT FOR INITIAL COLA COM-
PUTATION.
(a) ELIMINATION OF POSSIBLE COLA INVERSION.—Section 1401a
of title 10, United States Code, is amended—
(1) in subsections (c)(1), (d), and (e), by inserting ‘‘but
subject to subsection (f)(2)’’ after ‘‘Notwithstanding subsection
(b)’’;
(2) in subsection (c)(2), by inserting ‘‘(subject to subsection
(f)(2) as applied to other members whose retired pay is com-
puted on the current rates of basic pay in the most recent
adjustment under this section)’’ after ‘‘shall be increased’’; and
(3) in subsection (f)—
(A) by designating the text after the subsection heading
as paragraph (1), indenting that text two ems, and inserting
‘‘PREVENTION OF RETIRED PAY INVERSIONS.—’’ before ‘‘Not-
withstanding’’; and
(B) by adding at the end the following new paragraph:
‘‘(2) PREVENTION OF COLA INVERSIONS.—The percentage of
the first adjustment under this section in the retired pay of
any person, as determined under subsection (c)(1), (c)(2), (d),
H. R. 4546—116
or (e), may not exceed the percentage increase in retired pay
determined under subsection (b)(2) that is effective on the same
date as the effective date of such first adjustment.’’.
(b) 
TECHNICAL
AMENDMENTS.—Such 
section 
is 
further
amended—
(1) in subsection (d), by inserting ‘‘or on or after August
1, 1986, if the member or former member did not elect to
receive a bonus under section 322 of title 37’’ after ‘‘August
1, 1986,’’; and
(2) in subsection (e), by inserting ‘‘and elected to receive
a bonus under section 322 of title 37’’ after ‘‘August 1, 1986,’’.
SEC. 
634. 
TECHNICAL 
REVISIONS 
TO 
SO-CALLED 
‘‘FORGOTTEN
WIDOWS’’ ANNUITY PROGRAM.
(a) CLARIFICATION OF ELIGIBILITY.—Subsection (a)(1) of section
644 of the National Defense Authorization Act for Fiscal Year
1998 (Public Law 105–85; 10 U.S.C. 1448 note) is amended—
(1) in subparagraph (A), by inserting after ‘‘(A)’’ the fol-
lowing: ‘‘became entitled to retired or retainer pay before Sep-
tember 21, 1972,’’; and
(2) in subparagraph (B), by striking ‘‘was a member of
a reserve component of the Armed Forces’’ and inserting ‘‘died’’.
(b) CLARIFICATION OF INTERACTION WITH OTHER BENEFITS.—
(1) Subsection (a)(2) of such section is amended by striking ‘‘and
who’’ and all that follows through ‘‘note)’’.
(2) Subsection (b)(2) of such section is amended to read as
follows:
‘‘(2) The amount of an annuity to which a surviving spouse
is entitled under this section for any period shall be reduced (but
not below zero) by any amount paid to that surviving spouse for
the same period under any of the following provisions of law:
‘‘(A) Section 1311(a) of title 38, United States Code (relating
to dependency and indemnity compensation payable by the
Secretary of Veterans Affairs).
‘‘(B) Chapter 73 of title 10, United States Code.
‘‘(C) Section 4 of Public Law 92–425 (10 U.S.C. 1448 note).’’.
(c) CLARIFICATION OF DEFINITION OF SURVIVING SPOUSE.—Sub-
section (d)(2) of such section is amended by striking ‘‘the terms’’
and all that follows through ‘‘and (8)’’ and inserting ‘‘such term
in paragraph (9)’’.
(d) SPECIFICATION IN LAW OF CURRENT BENEFIT AMOUNT.—
Subsection (b) of such section is amended—
(1) in paragraph (1), by striking ‘‘$165’’ and inserting
‘‘$185.58’’; and
(2) in paragraph (3)—
(A) by striking ‘‘the date of the enactment of this
Act’’ and inserting ‘‘May 1, 2002,’’; and
(B) by striking the last sentence.
(e) SPECIFICATION OF ENACTMENT MONTH.—Subsection (e) of
such section is amended—
(1) in paragraph (1), by striking ‘‘the month in which this
Act is enacted’’ and inserting ‘‘November 1997’’; and
(2) in paragraph (2), by striking ‘‘the first month that
begins after the month in which this Act is enacted’’ and
inserting ‘‘December 1997’’.
H. R. 4546—117
SEC. 635. EXPANSION OF AUTHORITY OF SECRETARY OF DEFENSE
TO WAIVE TIME LIMITATIONS ON CLAIMS AGAINST THE
GOVERNMENT FOR MILITARY PERSONNEL BENEFITS.
(a) AUTHORITY FOR WAIVER OF TIME LIMITATIONS.—Paragraph
(1) of section 3702(e) of title 31, United States Code, is amended
by striking ‘‘a claim’’ and all that follows through ‘‘title 10’’ and
inserting ‘‘a claim referred to in subsection (a)(1)(A)’’.
(b) TECHNICAL AMENDMENTS.—(1) Such paragraph is further
amended—
(A) by striking ‘‘Upon the request’’ and all that follows
through ‘‘the Secretary of Defense’’ and inserting ‘‘The Secretary
of Defense’’;
(B) by striking ‘‘and, subject to paragraph (2), settle the
claim’’; and
(C) by adding at the end the following new sentence: ‘‘In
the case of a claim by or with respect to a member of the
uniformed services who is not under the jurisdiction of the
Secretary of a military department, such a waiver may be
made only upon the request of the Secretary concerned (as
defined in section 101 of title 37).’’.
(2) Paragraph (2) of such section is amended—
(A) by striking ‘‘under paragraph (1)’ and inserting ‘‘under
subsection (a)(1)(A)’’; and
(B) by inserting before the period at the end the following:
‘‘, except that in the case of a claim for retired pay or survivor
benefits, if the obligation claimed would have been paid from
a trust fund if timely paid, the payment of the claim shall
be made from that trust fund’’.
(c) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply with respect to claims against the United States pre-
sented to the Secretary of Defense under section 3702 of title
31, United States Code, on or after the date of the enactment
of this Act.
SEC. 636. SPECIAL COMPENSATION FOR CERTAIN COMBAT-RELATED
DISABLED UNIFORMED SERVICES RETIREES.
(a) AUTHORITY.—(1) Chapter 71 of title 10, United States Code,
is amended by inserting after section 1413 the following new section:
‘‘§ 1413a. Special compensation for certain combat-related
disabled uniformed services retirees
‘‘(a) AUTHORITY.—The Secretary concerned shall pay to each
eligible combat-related disabled uniformed services retiree who
elects benefits under this section a monthly amount for the combat-
related disability of the retiree determined under subsection (b).
‘‘(b) AMOUNT.—
‘‘(1) DETERMINATION
OF
MONTHLY
AMOUNT.—Subject to
paragraphs (2) and (3), the monthly amount to be paid an
eligible combat-related disabled uniformed services retiree for
a combat-related disability under subsection (a) is the monthly
amount of compensation to which the retiree would be entitled
solely for the combat-related disability consistent with chapter
11 of title 38.
‘‘(2) MAXIMUM AMOUNT.—The amount paid to an eligible
combat-related disabled uniformed services retiree for any
month under paragraph (1) may not exceed the amount of
H. R. 4546—118
the reduction in retired pay that is applicable to the retiree
for that month under sections 5304 and 5305 of title 38.
‘‘(3) SPECIAL RULES FOR CHAPTER 61 DISABILITY RETIREES.—
In the case of an eligible combat-related disabled uniformed
services retiree who is retired under chapter 61 of this title,
the amount of the payment under paragraph (1) for any month
shall be reduced by the amount (if any) by which the amount
of the member’s retired pay under chapter 61 of this title
exceeds the amount of retired pay to which the member would
have been entitled under any other provision of law based
upon the member’s service in the uniformed services if the
member had not been retired under chapter 61 of this title.
‘‘(c) ELIGIBLE RETIREES.—For purposes of this section, an
eligible combat-related disabled uniformed services retiree referred
to in subsection (a) is a member of the uniformed services entitled
to retired pay who—
‘‘(1) has completed at least 20 years of service in the uni-
formed services that are creditable for purposes of computing
the amount of retired pay to which the member is entitled;
and
‘‘(2) has a qualifying combat-related disability.
‘‘(d) PROCEDURES.—The Secretary of Defense shall prescribe
procedures and criteria under which a disabled uniformed services
retiree may apply to the Secretary of a military department to
be considered to be an eligible combat-related disabled uniformed
services retiree. Such procedures shall apply uniformly throughout
the Department of Defense.
‘‘(e) QUALIFYING COMBAT-RELATED DISABILITY.—In this section,
the term ‘qualifying combat-related disability’ means either of the
following:
‘‘(1) A disability that—
‘‘(A) is attributable to an injury for which the member
was awarded the Purple Heart; and
‘‘(B) is rated as not less than 10 percent disabling—
‘‘(i) by the Secretary concerned, as of the date
on which the member is retired from the uniformed
services, under criteria prescribed by the Secretary
of Defense; or
‘‘(ii) by the Secretary of Veterans Affairs.
‘‘(2) A service-connected disability that—
‘‘(A) was incurred (as determined under criteria pre-
scribed by the Secretary of Defense)—
‘‘(i) as a direct result of armed conflict;
‘‘(ii) while engaged in hazardous service;
‘‘(iii) in the performance of duty under conditions
simulating war; or
‘‘(iv) through an instrumentality of war; and
‘‘(B) is rated as not less than 60 percent disabling—
‘‘(i) by the Secretary concerned, as of the date
on which the member is retired from the uniformed
services, under criteria prescribed by the Secretary
of Defense; or
‘‘(ii) by the Secretary of Veterans Affairs.
‘‘(f) CONSTRUCTION WITH SPECIAL COMPENSATION FOR SEVERELY
DISABLED UNIFORMED SERVICES RETIREES.—
H. R. 4546—119
‘‘(1) SINGLE SOURCE OF COMPENSATION.—An individual who
is paid special compensation under this section may not receive
special compensation under section 1413 of this title.
‘‘(2) ELECTION OF SOURCE.—An individual who is eligible
for special compensation under this section and special com-
pensation under section 1413 of this title shall elect which
special compensation to receive.
‘‘(3) REGULATIONS.—The Secretary of Defense shall pre-
scribe in regulations the manner and form of an election under
this subsection.
‘‘(g) STATUS OF PAYMENTS.—Payments under this section are
not retired pay.
‘‘(h) SOURCE OF PAYMENTS.—Payments under this section for
any fiscal year shall be paid out of funds appropriated for pay
and allowances payable by the Secretary concerned for that fiscal
year.
‘‘(i) OTHER DEFINITIONS.—In this section:
‘‘(1) The term ‘service-connected’ has the meaning given
such term in section 101 of title 38.
‘‘(2) The term ‘retired pay’ includes retainer pay, emergency
officers’ retirement pay, and naval pension.’’.
(2) Section 1413a of title 10, United States Code, as added
by paragraph (1), shall take effect not later than 180 days after
the date of the enactment of this Act.
(3) The table of sections at the beginning of chapter 71 of
such title is amended by inserting after the item relating to section
1413 the following new item:
‘‘1413a. Special compensation for certain combat-related disabled uniformed services
retirees.’’.
(b) SPECIAL COMPENSATION FOR CERTAIN SEVERELY DISABLED
UNIFORMED SERVICES RETIREES.—Section 1413 of title 10, United
States Code, is amended—
(1) by redesignating subsections (e), (f) and (g) as sub-
sections (f), (g), and (h), respectively; and
(2) by inserting after subsection (d) the following new sub-
section (e):
‘‘(e) CONSTRUCTION WITH SPECIAL COMPENSATION FOR COMBAT-
DISABLED UNIFORMED SERVICES RETIREES.—(1) An individual who
is paid special compensation under this section may not receive
special compensation under section 1413a of this title.
‘‘(2) An individual who is eligible for special compensation under
this section and special compensation under section 1413a of this
title shall elect which special compensation to receive.
‘‘(3) The Secretary of Defense shall prescribe in regulations
the manner and form of an election under this subsection.’’.
Subtitle E—Montgomery GI Bill
SEC. 641. TIME LIMITATION FOR USE OF MONTGOMERY GI BILL
ENTITLEMENT 
BY 
MEMBERS 
OF 
THE 
SELECTED
RESERVE.
(a) EXTENSION OF LIMITATION PERIOD.—Section 16133(a)(1) of
title 10, United States Code, is amended by striking ‘‘10-year’’
and inserting ‘‘14-year’’.
H. R. 4546—120
(b) EFFECTIVE
DATE
AND
APPLICABILITY.—The amendment
made by subsection (a) shall take effect on October 1, 2002, and
shall apply with respect to periods of entitlement to educational
assistance under chapter 1606 of title 10, United States Code,
that begin on or after October 1, 1992.
SEC. 642. REPAYMENT REQUIREMENTS UNDER RESERVE COMPONENT
MONTGOMERY GI BILL ARISING FROM FAILURE TO
PARTICIPATE SATISFACTORILY IN MILITARY SERVICE TO
BE CONSIDERED DEBTS OWED TO THE UNITED STATES.
Section 16135 of title 10, United States Code, is amended
by adding at the end the following new subsection:
‘‘(c)(1) Subject to subsection (a)(2), an obligation to pay a refund
to the United States under subsection (a)(1)(B) in an amount deter-
mined under subsection (b) is, for all purposes, a debt owed to
the United States.
‘‘(2) A discharge in bankruptcy under title 11 that is entered
less than five years after the termination of an enlistment or
other agreement under this section does not discharge the person
signing such enlistment or other agreement from a debt arising
under the enlistment or agreement, respectively, under this sub-
section.’’.
SEC. 643. TECHNICAL ADJUSTMENTS TO AUTHORITY FOR CERTAIN
MEMBERS TO TRANSFER EDUCATIONAL ASSISTANCE
UNDER MONTGOMERY GI BILL TO DEPENDENTS.
(a) CLARIFICATION OF RATE OF EDUCATIONAL ASSISTANCE FOR
DEPENDENTS
TO WHOM ENTITLEMENT
IS TRANSFERRED.—Section
3020(h) of title 38, United States Code, is amended—
(1) in paragraph (2)—
(A) by striking ‘‘paragraphs (4) and (5)’’ and inserting
‘‘paragraphs (5) and (6)’’; and
(B) by striking ‘‘and at the same rate’’;
(2) by redesignating paragraphs (3) through (6) as para-
graphs (4) through (7), respectively; and
(3) by inserting after paragraph (2) the following new para-
graph (3):
‘‘(3)(A) Subject to subparagraph (B), the monthly rate of edu-
cational assistance payable to a dependent to whom entitlement
is transferred under this section shall be the monthly amount
payable under sections 3015 and 3022 of this title to the individual
making the transfer.
‘‘(B) The monthly rate of assistance payable to a dependent
under subparagraph (A) shall be subject to the provisions of section
3032 of this title, except that the provisions of subsection (a)(1)
of that section shall not apply even if the individual making the
transfer to the dependent under this section is on active duty
during all or any part of enrollment period of the dependent in
which such entitlement is used.’’.
(b) SOURCE OF FUNDS FROM INCREASED USAGE.—Section 3035(b)
of such title is amended—
(1) in paragraph (1), by striking ‘‘paragraphs (2) and (3)
of this subsection’’ and inserting ‘‘paragraphs (2), (3), and (4)’’;
and
(2) by adding at the end the following new paragraph:
‘‘(4) Payments attributable to the increased usage of benefits
as a result of transfers of entitlement to basic educational assistance
under section 3020 of this title shall be made from the Department
H. R. 4546—121
of Defense Education Benefits Fund established under section 2006
of title 10 or from appropriations made to the Department of
Transportation, as appropriate.’’.
(c) EFFECTIVE DATE.—(1) The amendments made by subsection
(a) shall take effect as if included in the enactment of section
3020 of title 38, United States Code, by section 654(a)(1) of the
National Defense Authorization Act for Fiscal Year 2002 (Public
Law 107–107; 115 Stat. 1153).
(2) The amendments made by subsection (b) shall take effect
as if made by section 654 of the National Defense Authorization
Act for Fiscal Year 2002 (Public Law 107–107; 115 Stat. 1153).
Subtitle F—Other Matters
SEC. 651. PAYMENT OF INTEREST ON STUDENT LOANS.
(a) AUTHORITY.—(1) Chapter 109 of title 10, United States
Code, is amended by adding at the end the following new section:
‘‘§ 2174. Interest payment program: members on active duty
‘‘(a) AUTHORITY.—(1) The Secretary concerned may pay in
accordance with this section the interest and any special allowances
that accrue on one or more student loans of an eligible member
of the armed forces.
‘‘(2) The Secretary of a military department may exercise the
authority under paragraph (1) only if approved by the Secretary
of Defense and subject to such requirements, conditions, and restric-
tions as the Secretary of Defense may prescribe.
‘‘(b) ELIGIBLE MEMBERS.—A member of the armed forces is
eligible for the benefit under subsection (a) while the member—
‘‘(1) is serving on active duty in fulfillment of the member’s
first enlistment in the armed forces or, in the case of an
officer, is serving on active duty and has not completed more
than three years of service on active duty;
‘‘(2) is the debtor on one or more unpaid loans described
in subsection (c); and
‘‘(3) is not in default on any such loan.
‘‘(c) STUDENT LOANS.—The authority to make payments under
subsection (a) may be exercised with respect to the following loans:
‘‘(1) A loan made, insured, or guaranteed under part B
of title IV of the Higher Education Act of 1965 (20 U.S.C.
1071 et seq.).
‘‘(2) A loan made under part D of such title (20 U.S.C.
1087a et seq.).
‘‘(3) A loan made under part E of such title (20 U.S.C.
1087aa et seq.).
‘‘(d) MAXIMUM BENEFIT.—The months for which interest and
any special allowance may be paid on behalf of a member of the
armed forces under this section are any 36 consecutive months
during which the member is eligible under subsection (b).
‘‘(e) FUNDS FOR PAYMENTS.—Appropriations available for the
pay and allowances of military personnel shall be available for
payments under this section.
‘‘(f) COORDINATION.—(1) The Secretary of Defense and, with
respect to the Coast Guard when it is not operating as a service
in the Navy, the Secretary of the Department in which the Coast
H. R. 4546—122
Guard is operating shall consult with the Secretary of Education
regarding the administration of the authority under this section.
‘‘(2) The Secretary concerned shall transfer to the Secretary
of Education the funds necessary—
‘‘(A) to pay interest and special allowances on student
loans under this section (in accordance with sections 428(o),
455(l), and 464(j) of the Higher Education Act of 1965 (20
U.S.C. 1078(o), 1087e(l), and 1087dd(j)); and
‘‘(B) to reimburse the Secretary of Education for any reason-
able administrative costs incurred by the Secretary in coordi-
nating the program under this section with the administration
of the student loan programs under parts B, D, and E of
title IV of the Higher Education Act of 1965.
‘‘(g) SPECIAL ALLOWANCE DEFINED.—In this section, the term
‘special allowance’ means a special allowance that is payable under
section 438 of the Higher Education Act of 1965 (20 U.S.C. 1087–
1).’’.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:
‘‘2174. Interest payment program: members on active duty.’’.
(b) FEDERAL FAMILY EDUCATION LOANS AND DIRECT LOANS.—
(1) Subsection (c)(3) of section 428 of the Higher Education Act
of 1965 (20 U.S.C. 1078) is amended—
(A) in clause (i) of subparagraph (A)—
(i) by striking ‘‘or’’ at the end of subclause (II);
(ii) by inserting ‘‘or’’ at the end of subclause (III);
and
(iii) by adding at the end the following new subclause:
‘‘(IV) is eligible for interest payments to be
made on such loan for service in the Armed Forces
under section 2174 of title 10, United States Code,
and, pursuant to that eligibility, the interest is
being paid on such loan under subsection (o);’’;
(B) in clause (ii)(II) of subparagraph (A), by inserting ‘‘or
(IV)’’ after ‘‘clause (i)(II)’’; and
(C) by striking subparagraph (C) and inserting the fol-
lowing:
‘‘(C) shall contain provisions that specify that—
‘‘(i) the form of forbearance granted by the lender
pursuant to this paragraph, other than subparagraph
(A)(i)(IV), shall be temporary cessation of payments,
unless the borrower selects forbearance in the form
of an extension of time for making payments, or
smaller payments than were previously scheduled; and
‘‘(ii) the form of forbearance granted by the lender
pursuant to subparagraph (A)(i)(IV) shall be the tem-
porary cessation of all payments on the loan other
than payments of interest on the loan that are made
under subsection (o); and’’.
(2) Section 428 of such Act is further amended by adding
at the end the following new subsection:
‘‘(o) ARMED FORCES STUDENT LOAN INTEREST PAYMENT PRO-
GRAM.—
‘‘(1) AUTHORITY.—Using funds received by transfer to the
Secretary under section 2174 of title 10, United States Code,
for the payment of interest and any special allowance on a
H. R. 4546—123
loan to a member of the Armed Forces that is made, insured,
or guaranteed under this part, the Secretary shall pay the
interest and special allowance on such loan as due for a period
not in excess of 36 consecutive months. The Secretary may
not pay interest or any special allowance on such a loan out
of any funds other than funds that have been so transferred.
‘‘(2) FORBEARANCE.—During the period in which the Sec-
retary is making payments on a loan under paragraph (1),
the lender shall grant the borrower forbearance in accordance
with the guaranty agreement under subsection (c)(3)(A)(i)(IV).
‘‘(3) SPECIAL ALLOWANCE DEFINED.—For the purposes of
this subsection, the term ‘special allowance’, means a special
allowance that is payable with respect to a loan under section
438.’’.
(c) FEDERAL DIRECT LOANS.—Section 455 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1087e) is amended by adding at
the end the following new subsection:
‘‘(l) ARMED FORCES STUDENT LOAN INTEREST PAYMENT PRO-
GRAM.—
‘‘(1) AUTHORITY.—Using funds received by transfer to the
Secretary under section 2174 of title 10, United States Code,
for the payment of interest on a loan made under this part
to a member of the Armed Forces, the Secretary shall pay
the interest on the loan as due for a period not in excess
of 36 consecutive months. The Secretary may not pay interest
on such a loan out of any funds other than funds that have
been so transferred.
‘‘(2) FORBEARANCE.—During the period in which the Sec-
retary is making payments on a loan under paragraph (1),
the Secretary shall grant the borrower forbearance, in the
form of a temporary cessation of all payments on the loan
other than the payments of interest on the loan that are made
under that paragraph.’’.
(d) FEDERAL PERKINS LOANS.—Section 464 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1087dd) is amended—
(1) in subsection (e)—
(A) by striking ‘‘or’’ at the end of paragraph (1);
(B) by striking the period at the end of paragraph
(2) and inserting ‘‘; or’’; and
(C) by adding at the end the following new paragraph:
‘‘(3) the borrower is eligible for interest payments to be
made on such loan for service in the Armed Forces under
section 2174 of title 10, United States Code, and, pursuant
to that eligibility, the interest on such loan is being paid under
subsection (j), except that the form of a forbearance under
this paragraph shall be a temporary cessation of all payments
on the loan other than payments of interest on the loan that
are made under subsection (j).’’; and
(2) by adding at the end the following new subsection:
‘‘(j) ARMED FORCES STUDENT LOAN INTEREST PAYMENT PRO-
GRAM.—
‘‘(1) AUTHORITY.—Using funds received by transfer to the
Secretary under section 2174 of title 10, United States Code,
for the payment of interest on a loan made under this part
to a member of the Armed Forces, the Secretary shall pay
the interest on the loan as due for a period not in excess
of 36 consecutive months. The Secretary may not pay interest
H. R. 4546—124
on such a loan out of any funds other than funds that have
been so transferred.
‘‘(2) FORBEARANCE.—During the period in which the Sec-
retary is making payments on a loan under paragraph (1),
the institution of higher education shall grant the borrower
forbearance in accordance with subsection (e)(3).’’.
(e) EFFECTIVE DATE.—The amendments made by this section
shall apply with respect to interest, and any special allowance
under section 438 of the Higher Education Act of 1965, that accrue
for months beginning on or after October 1, 2003, on student loans
described in subsection (c) of section 2174 of title 10, United States
Code (as added by subsection (a)), that were made before, on,
or after such date to members of the Armed Forces who are on
active duty (as defined in section 101(d) of title 10, United States
Code) on or after that date.
SEC. 652. ADDITIONAL AUTHORITY TO PROVIDE ASSISTANCE FOR
FAMILIES OF MEMBERS OF THE ARMED FORCES.
(a) AUTHORITY.—(1) Subchapter I of chapter 88 of title 10,
United States Code, is amended by adding at the end the following
new section:
‘‘§ 1788. Additional family assistance
‘‘(a) AUTHORITY.—The Secretary of Defense may provide for
the families of members of the armed forces serving on active
duty, in addition to any other assistance available for such families,
any assistance that the Secretary considers appropriate to ensure
that the children of such members obtain needed child care, edu-
cation, and other youth services.
‘‘(b) PRIMARY PURPOSE OF ASSISTANCE.—The assistance author-
ized by this section should be directed primarily toward providing
needed family support, including child care, education, and other
youth services, for children of members of the Armed Forces who
are deployed, assigned to duty, or ordered to active duty in connec-
tion with a contingency operation.’’.
(2) The table of sections at the beginning of such subchapter
is amended by adding at the end the following new item:
‘‘1788. Additional family assistance.’’.
(b) EFFECTIVE DATE.—Section 1788 of title 10, United States
Code, as added by subsection (a), shall take effect on October
1, 2002.
SEC. 653. REPEAL OF AUTHORITY FOR ACCEPTANCE OF HONORARIA
BY PERSONNEL AT CERTAIN DEPARTMENT OF DEFENSE
SCHOOLS.
(a) REPEAL OF EXEMPTION.—Section 542 of the National Defense
Authorization Act for Fiscal Year 1993 (Public Law 102–484; 106
Stat. 2413; 10 U.S.C. prec. 2161 note) is repealed.
(b) EFFECTIVE DATE.—The repeal made by subsection (a) shall
apply with respect to appearances made, speeches presented, and
articles published on or after October 1, 2002.
SEC. 654. ADDITION OF DEFINITION OF CONTINENTAL UNITED STATES
IN TITLE 37.
(a) DEFINITION.—Section 101(1) of title 37, United States Code,
is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(1)’’; and
H. R. 4546—125
(2) by adding at the end the following new subparagraph:
‘‘(B) The term ‘continental United States’ means the 48
contiguous States and the District of Columbia.’’.
(b) CONFORMING AMENDMENTS.—Title 37, United States Code,
is amended as follows:
(1) Section 314(a)(3) is amended by striking ‘‘the 48 contig-
uous States and the District of Columbia’’ and inserting ‘‘the
continental United States’’.
(2) Section 403b(i) is amended by striking paragraph (6).
(3) Section 409 is amended by striking subsection (e).
(4) Section 411b(a) is amended by striking ‘‘the 48 contig-
uous States and the District of Columbia’’ both places it appears
and inserting ‘‘the continental United States’’.
(5) Section 411d is amended by striking subsection (d).
(6) Section 430 is amended by striking subsection (f) and
inserting the following new subsection (f):
‘‘(f) DEFINITIONS.—In this section:
‘‘(1) The term ‘formal education’ means the following:
‘‘(A) A secondary education.
‘‘(B) An undergraduate college education.
‘‘(C) A graduate education pursued on a full-time basis
at an institution of higher education.
‘‘(D) Vocational education pursued on a full-time basis
at a postsecondary vocational institution.
‘‘(2) The term ‘institution of higher education’ has the
meaning given that term in section 101 of the Higher Education
Act of 1965 (20 U.S.C. 1001).
‘‘(3) The term ‘postsecondary vocational institution’ has
the meaning given that term in section 102(c) of the Higher
Education Act of 1965 (20 U.S.C. 1002(c)).’’.
TITLE VII—HEALTH CARE PROVISIONS
Subtitle A—Health Care Program Improvements
Sec. 701. Elimination of requirement for TRICARE preauthorization of inpatient
mental health care for medicare-eligible beneficiaries.
Sec. 702. Continued TRICARE eligibility of dependents residing at remote locations
after departure of sponsors for unaccompanied assignments and eligi-
bility of dependents of reserve component members ordered to active
duty.
Sec. 703. Eligibility of surviving dependents for TRICARE dental program benefits
after discontinuance of former enrollment.
Sec. 704. Department of Defense Medicare-Eligible Retiree Health Care Fund.
Sec. 705. Approval of medicare providers as TRICARE providers.
Sec. 706. Technical corrections relating to transitional health care for members sep-
arated from active duty.
Sec. 707. Extension of temporary authority to enter into personal services contracts
for the performance of health care responsibilities at locations other
than military medical treatment facilities.
Sec. 708. Access to health care services for beneficiaries eligible for TRICARE and
Department of Veterans Affairs health care.
Sec. 709. Disclosure of information on Project 112 to Department of Veterans Af-
fairs.
Subtitle B—Reports
Sec. 711. Claims information.
Sec. 712. Comptroller General report on provision of care under the TRICARE pro-
gram.
Sec. 713. Repeal of report requirement.
H. R. 4546—126
Subtitle C—Department of Defense-Department of Veterans Affairs Health
Resources Sharing
Sec. 721. Revised coordination and sharing guidelines.
Sec. 722. Health care resources sharing and coordination project.
Sec. 723. Report on improved coordination and sharing of health care and health
care resources following domestic acts of terrorism or domestic use of
weapons of mass destruction.
Sec. 724. Interoperability of Department of Veterans Affairs and Department of De-
fense pharmacy data systems.
Sec. 725. Joint pilot program for providing graduate medical education and training
for physicians.
Sec. 726. Repeal of certain limits on Department of Veterans Affairs resources.
Subtitle A—Health Care Program
Improvements
SEC. 
701. 
ELIMINATION 
OF 
REQUIREMENT 
FOR 
TRICARE
PREAUTHORIZATION OF INPATIENT MENTAL HEALTH
CARE FOR MEDICARE-ELIGIBLE BENEFICIARIES.
(a) ELIMINATION OF REQUIREMENT.—Section 1079(i)(3) of title
10, United States Code, is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(3)’’;
(2) by striking ‘‘Except in the case of an emergency,’’ and
inserting ‘‘Except as provided in subparagraph (B),’’; and
(3) by adding at the end the following new subparagraphs:
‘‘(B) Preadmission authorization for inpatient mental health
services is not required under subparagraph (A) in the following
cases:
‘‘(i) In the case of an emergency.
‘‘(ii) In a case in which any benefits are payable for such
services under part A of title XVIII of the Social Security
Act (42 U.S.C. 1395c et seq.), subject to subparagraph (C).
‘‘(C) In a case of inpatient mental health services to which
subparagraph (B)(ii) applies, the Secretary shall require advance
authorization for a continuation of the provision of such services
after benefits cease to be payable for such services under such
part A.’’.
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) shall take effect October 1, 2003.
SEC. 
702. 
CONTINUED 
TRICARE 
ELIGIBILITY 
OF 
DEPENDENTS
RESIDING AT REMOTE LOCATIONS AFTER DEPARTURE
OF SPONSORS FOR UNACCOMPANIED ASSIGNMENTS AND
ELIGIBILITY OF DEPENDENTS OF RESERVE COMPONENT
MEMBERS ORDERED TO ACTIVE DUTY.
Section 1079(p) of title 10, United States Code, is amended—
(1) in paragraph (1), by striking ‘‘dependents referred to
in subsection (a) of a member of the uniformed services referred
to in section 1074(c)(3) of this title who are residing with
the member’’ and inserting ‘‘dependents described in paragraph
(3)’’;
(2) by redesignating paragraph (3) as paragraph (4); and
(3) by inserting after paragraph (2) the following new para-
graph (3):
‘‘(3) This subsection applies with respect to a dependent referred
to in subsection (a) who—
H. R. 4546—127
‘‘(A) is a dependent of a member of the uniformed services
referred to in section 1074(c)(3) of this title and is residing
with the member;
‘‘(B) is a dependent of a member who, after having served
in a duty assignment described in section 1074(c)(3) of this
title, has relocated without the dependent pursuant to orders
for a permanent change of duty station from a remote location
described in subparagraph (B)(ii) of such section where the
member and the dependent resided together while the member
served in such assignment, if the orders do not authorize
dependents to accompany the member to the new duty station
at the expense of the United States and the dependent con-
tinues to reside at the same remote location, or
‘‘(C) is a dependent of a reserve component member ordered
to active duty for a period of more than 30 days and is residing
with the member, and the residence is located more than 50
miles, or approximately one hour of driving time, from the
nearest military medical treatment facility adequate to provide
the needed care.’’.
SEC. 703. ELIGIBILITY OF SURVIVING DEPENDENTS FOR TRICARE
DENTAL PROGRAM BENEFITS AFTER DISCONTINUANCE
OF FORMER ENROLLMENT.
Section 1076a(k)(2) of title 10, United States Code, is amended
by striking ‘‘if the dependent is enrolled on the date of the death
of the member in a dental benefits plan established under sub-
section (a)’’ and inserting ‘‘if, on the date of the death of the
member, the dependent is enrolled in a dental benefits plan estab-
lished under subsection (a) or is not enrolled in such a plan by
reason of a discontinuance of a former enrollment under subsection
(f)’’.
SEC. 704. DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE RETIREE
HEALTH CARE FUND.
(a) SOURCE OF FUNDS FOR MONTHLY ACCRUAL PAYMENTS INTO
THE FUND.—Section 1116(c) of title 10, United States Code, is
amended by striking ‘‘health care programs’’ and inserting ‘‘pay
of members’’.
(b) MANDATORY PARTICIPATION OF OTHER UNIFORMED SERV-
ICES.—Section 1111(c) of such title is amended—
(1) in the first sentence, by striking ‘‘may enter into an
agreement with any other administering Secretary’’ and
inserting ‘‘shall enter into an agreement with each other admin-
istering Secretary’’; and
(2) in the second sentence, by striking ‘‘Any such’’ and
inserting ‘‘The’’.
SEC. 705. APPROVAL OF MEDICARE PROVIDERS AS TRICARE PRO-
VIDERS.
(a) IN GENERAL.—Section 1079 of title 10, United States Code,
is amended by adding at the end the following new subsection:
‘‘(q) Subject to subsection (a), a physician or other health care
practitioner who is eligible to receive reimbursement for services
provided under medicare (as defined in section 1086(d)(3)(C) of
this title) shall be considered approved to provide medical care
authorized under this section and section 1086 of this title unless
the administering Secretaries have information indicating medicare,
H. R. 4546—128
TRICARE, or other Federal health care program integrity violations
by the physician or other health care practitioner.’’.
(b) APPLICABILITY.—The amendment made by subsection (a)
shall apply with respect to any contract under the TRICARE pro-
gram entered into on or after the date of the enactment of this
Act.
SEC. 706. TECHNICAL CORRECTIONS RELATING TO TRANSITIONAL
HEALTH CARE FOR MEMBERS SEPARATED FROM ACTIVE
DUTY.
(a) CONTINUED APPLICABILITY
TO DEPENDENTS.—Subsection
(a)(1) of section 736 of the National Defense Authorization Act
for Fiscal Year 2002 (Public Law 107–107; 115 Stat. 1172) is
amended to read as follows:
‘‘(1) in paragraph (1), by striking ‘paragraph (2), a member’
and all that follows through ‘of the member),’ and inserting
‘paragraph (3), a member of the armed forces who is separated
from active duty as described in paragraph (2) (and the depend-
ents of the member)’;’’.
(b) CLARIFICATION REGARDING THE COAST GUARD.—Subsection
(b)(2) of such section is amended to read as follows:
‘‘(2) in subsection (e)—
‘‘(A) by striking the first sentence; and
‘‘(B) by striking ‘the Coast Guard’ in the second sen-
tence and inserting ‘the members of the Coast Guard and
their dependents’.’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall take effect as of December 28, 2001, and as if included in
the National Defense Authorization Act for Fiscal Year 2002 as
enacted.
SEC. 707. EXTENSION OF TEMPORARY AUTHORITY TO ENTER INTO
PERSONAL SERVICES CONTRACTS FOR THE PERFORM-
ANCE OF HEALTH CARE RESPONSIBILITIES AT LOCA-
TIONS OTHER THAN MILITARY MEDICAL TREATMENT
FACILITIES.
Section 1091(a)(2) of title 10, United States Code, is amended
by striking ‘‘December 31, 2002’’ and inserting ‘‘December 31, 2003’’.
SEC. 708. ACCESS TO HEALTH CARE SERVICES FOR BENEFICIARIES
ELIGIBLE FOR TRICARE AND DEPARTMENT OF VET-
ERANS AFFAIRS HEALTH CARE.
(a) REQUIREMENT TO ESTABLISH PROCESS.—(1) The Secretary
of Defense shall prescribe in regulations a process for resolving
issues relating to patient safety and continuity of care for covered
beneficiaries who are concurrently entitled to health care under
the TRICARE program and eligible for health care services provided
by the Department of Veterans Affairs. The Secretary shall—
(A) ensure that the process provides for coordination of,
and access to, health care from the two sources in a manner
that prevents diminution of access to health care from either
source; and
(B) in consultation with the Secretary of Veterans Affairs,
prescribe a clear definition of an ‘‘episode of care’’ for use
in the resolution of patient safety and continuity of care issues
under such process.
(2) Not later than May 1, 2003, the Secretary shall submit
to the Committees on Armed Services of the Senate and of the
H. R. 4546—129
House of Representatives a report describing the process prescribed
under paragraph (1).
(3) While prescribing the process under paragraph (1) and
upon completion of the report under paragraph (2), the Secretary
shall provide to the Comptroller General information that would
be relevant in carrying out the study required by subsection (b).
(b) COMPTROLLER GENERAL STUDY AND REPORT.—(1) The Comp-
troller General shall conduct a study of the health care issues
of covered beneficiaries described in subsection (a). The study shall
include the following:
(A) An analysis of whether covered beneficiaries who seek
services through the Department of Veterans Affairs are
receiving needed health care services in a timely manner from
the Department of Veterans Affairs, as compared to the timeli-
ness of the care available to covered beneficiaries under
TRICARE Prime (as set forth in access to care standards under
TRICARE program policy that are applicable to the care being
sought).
(B) An evaluation of the quality of care for covered bene-
ficiaries who do not receive needed services from the Depart-
ment of Veterans Affairs within a time period that is com-
parable to the time period provided for under such access
to care standards and who then must seek alternative care
under the TRICARE program.
(C) Recommendations to improve access to, and timeliness
and quality of, care for covered beneficiaries described in sub-
section (a).
(D) An evaluation of the feasibility and advisability of
making access to care standards applicable jointly under the
TRICARE program and the Department of Veterans Affairs
health care system.
(E) A review of the process prescribed by the Secretary
of Defense under subsection (a) to determine whether the
process ensures the adequacy and quality of the health care
services provided to covered beneficiaries under the TRICARE
program and through the Department of Veterans Affairs,
together with timeliness of access to such services and patient
safety.
(2) Not later than 60 days after the congressional committees
specified in subsection (a)(2) receive the report required under that
subsection, the Comptroller General shall submit to those commit-
tees a report on the study conducted under this subsection.
(c) DEFINITIONS.—In this section:
(1) The term ‘‘covered beneficiary’’ has the meaning pro-
vided by section 1072(5) of title 10, United States Code.
(2) The term ‘‘TRICARE program’’ has the meaning pro-
vided by section 1072(7) of such title.
(3) The term ‘‘TRICARE Prime’’ has the meaning provided
by section 1097a(f) of such title.
SEC. 709. DISCLOSURE OF INFORMATION ON PROJECT 112 TO DEPART-
MENT OF VETERANS AFFAIRS.
(a) PLAN FOR DISCLOSURE OF INFORMATION.—Not later than
90 days after the date of the enactment of this Act, the Secretary
of Defense shall submit to Congress and the Secretary of Veterans
Affairs a comprehensive plan for the review, declassification, and
submittal to the Department of Veterans Affairs of all records
H. R. 4546—130
and information of the Department of Defense on Project 112 that
are relevant to the provision of benefits by the Secretary of Veterans
Affairs to members of the Armed Forces who participated in that
project.
(b) PLAN REQUIREMENTS.—(1) The records and information cov-
ered by the plan under subsection (a) shall be the records and
information necessary to permit the identification of members of
the Armed Forces who were or may have been exposed to chemical
or biological agents as a result of Project 112.
(2) The plan shall provide for completion of all activities con-
templated by the plan not later than one year after the date
of the enactment of this Act.
(c) IDENTIFICATION OF OTHER PROJECTS OR TESTS.—The Sec-
retary of Defense also shall work with veterans and veterans service
organizations to identify other projects or tests conducted by the
Department of Defense that may have exposed members of the
Armed Forces to chemical or biological agents.
(d) GAO REPORTS
ON PLAN
AND IMPLEMENTATION.—(1) Not
later than 30 days after submission of the plan under subsection
(a), the Comptroller General shall submit to Congress a report
reviewing the plan. The report shall include an examination of
whether adequate resources have been committed, the timeliness
of the information to be released to the Department of Veterans
Affairs, and the adequacy of the procedures to notify affected vet-
erans of potential exposure.
(2) Not later than six months after implementation of the
plan begins, the Comptroller General shall submit to Congress
a report evaluating the progress in the implementation of the
plan.
(e) DOD REPORTS ON IMPLEMENTATION.—(1) Not later than
six months after the date of the enactment of this Act, and upon
completion of all activities contemplated by the plan under sub-
section (a), the Secretary of Defense shall submit to Congress and
the Secretary of Veterans Affairs a report on progress in the
implementation of the plan.
(2) Each report under paragraph (1) shall include, for the
period covered by such report—
(A) the number of records reviewed;
(B) each test, if any, under Project 112 identified during
such review;
(C) for each test so identified—
(i) the test name;
(ii) the test objective;
(iii) the chemical or biological agent or agents involved;
and
(iv) the number of members of the Armed Forces, and
civilian personnel, potentially effected by such test; and
(D) the extent of submittal of records and information
to the Secretary of Veterans Affairs under this section.
(f) PROJECT 112.—For purposes of this section, Project 112
refers to the chemical and biological weapons vulnerability-testing
program of the Department of Defense conducted by the Deseret
Test Center from 1963 to 1969. The project included the Shipboard
Hazard and Defense (SHAD) project of the Navy.