under chapter 33 of title 38, United States 
Code (as so added); or 
(ii) is making progress toward meet-
ing such requirements. 
(2) ELECTION
ON
TREATMENT
OF
TRANS-
FERRED ENTITLEMENT.— 
(A) ELECTION.—If, on the date an indi-
vidual described in subparagraph (A)(i) or 
(A)(iii) of paragraph (1) makes an election 
under that paragraph, a transfer of the entitle-
ment of the individual to basic educational as-
sistance under section 3020 of title 38, United 
States Code, is in effect and a number of 
months of the entitlement so transferred remain 
unutilized, the individual may elect to revoke all 
or a portion of the entitlement so transferred 
that remains unutilized. 
(B) AVAILABILITY OF REVOKED ENTITLE-
MENT.—Any entitlement revoked by an indi-
vidual under this paragraph shall no longer be 
available to the dependent to whom transferred, 
but shall be available to the individual instead 
for educational assistance under chapter 33 of 
title 38, United States Code (as so added), as 
provided in paragraph (3)(B). 
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(C) AVAILABILITY OF UNREVOKED ENTI-
TLEMENT.—Any entitlement described in sub-
paragraph (A) that is not revoked by an indi-
vidual in accordance with that subparagraph 
shall remain available to the eligible dependent 
or dependents concerned in accordance with the 
current transfer of such entitlement under sec-
tion 3020 of title 38, United States Code. 
(3) EDUCATIONAL
ASSISTANCE
FOR
SERVICE 
AFTER SEPTEMBER 11, 2001.— 
(A) IN
GENERAL.—Subject to subpara-
graph (B), an individual making an election 
under paragraph (1) shall be entitled to edu-
cational assistance under chapter 33 of title 38, 
United States Code (as so added), in accord-
ance with the provisions of such chapter, in-
stead of basic educational assistance under 
chapter 30 of title 38, United States Code, or 
educational assistance under chapter 107, 
1606, or 1607 of title 10, United States Code, 
as applicable. 
(B) LIMITATION
ON
ENTITLEMENT
FOR 
CERTAIN INDIVIDUALS.—In the case of an indi-
vidual making an election under paragraph (1) 
who is described by subparagraph (A)(i) of that 
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paragraph, the number of months of entitle-
ment of such individual to educational assist-
ance under chapter 33 of title 38, United 
States Code (as so added), shall be the number 
of months equal to the number of months of 
unused entitlement of such individual under 
chapter 30 of title 38, United States Code, as 
of the date of the election, including any num-
ber of months entitlement revoked by the indi-
vidual under paragraph (2)(A). 
(4) TREATMENT OF CONTRIBUTIONS TOWARD 
BASIC
EDUCATIONAL
ASSISTANCE; CESSATION
OF 
CONTRIBUTIONS.—Effective as of the first month 
beginning on or after the date of an election under 
paragraph (1) of an individual described by subpara-
graph (A)(v) of that paragraph, the obligation of 
such individual to make contributions under section 
3011(b) or 3012(c) of title 38, United States Code, 
as applicable, shall cease, and the requirements of 
such section shall be deemed to be no longer applica-
ble to such person. 
(5) TERMINATION
OF
ENTITLEMENT
UNDER 
MONTGOMERY GI BILL.—Effective on the last day of 
the month in which an individual makes an election 
under paragraph (1), the entitlement, if any, of the 
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individual to basic educational assistance under 
chapter 30 of title 38, United States Code, or edu-
cational assistance under chapter 107, 1606, or 
1607 of title 10, United States Code, as applicable, 
shall terminate. 
(6) IRREVOCABILITY OF ELECTIONS.—An elec-
tion under paragraph (1) or (2)(A) is irrevocable. 
SEC. 3. IMPROVEMENTS IN HOUSING BENEFITS FOR VET-
ERANS. 
(a) INCREASE IN MAXIMUM GUARANTY AMOUNT OF 
HOME
LOAN
GUARANTY
PROGRAM.—Section 
3703(a)(1)(C) of title 38, United States Code, is amend-
ed— 
(1) by striking ‘‘In this paragraph’’ and insert-
ing ‘‘(i) In this paragraph’’; and 
(2) by adding at the end the following new 
clause: 
‘‘(ii) The Secretary shall increase the dollar amount 
described in clause (i) with respect to residences of a par-
ticular size located in any area for which the median price 
for such size residence exceeds the dollar amount, to 25 
percent of the median price for such a residence in such 
area.’’. 
(b) REPEAL OF LOAN FUNDING FEES REQUIRE-
MENT FOR HOUSING LOANS.— 
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(1) IN GENERAL.—Section 3729 of such title is 
repealed. 
(2) CONFORMING AMENDMENTS.—(A) Section 
2041(b)(2) of such title is amended— 
(i) in subparagraph (A), by adding ‘‘and’’ 
at the end; 
(ii) in subparagraph (B), by striking ‘‘; 
and’’ and inserting a period; and 
(iii) by striking subparagraph (C). 
(B)(i) Section 3703 of such title is amended— 
(I) by striking subsection (e); and 
(II) by redesignating subsection (f) as sub-
section (e). 
(ii) Section 3732(a)(1) of such title is amended 
by striking ‘‘Except as provided in section 3703(e) 
of this title, if’’ and inserting ‘‘If’’. 
(C) Section 3722(c) of such title is amended by 
striking ‘‘section 3729 of this title or any other pro-
vision of law or’’ and inserting ‘‘any provision of law 
or any’’. 
(D) Section 3734(b)(2) of such title is amend-
ed— 
(i) by striking subparagraph (A); and 
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