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amounts shall be deposited into the education ac-
count of the Readjustment Benefits Account of the 
Department of Veterans Affairs and shall be avail-
able to the Secretary of Veterans Affairs to make 
payments of educational assistance under chapter 33 
of title 38, United States Code, as added by sub-
section (a). 
(4) REPORT.—By not later than October 1, 
2008, the Secretary of Defense shall submit to the 
congressional defense committees, the Committee on 
Veterans Affairs of the Senate, and the Committee 
on Veterans Affairs of the House of Representatives 
a detailed report on the agreement between the Sec-
retary of Defense and the Secretary of Veterans Af-
fairs and the status of the transfer of funds de-
scribed in paragraph (2). Such report shall include 
the date on which the Secretary of Defense has 
agreed to complete such transfer. 
(c) CLERICAL AMENDMENTS.—The tables of chap-
ters at the beginning of title 38, United States Code, and 
at the beginning of part III of such title, are each amend-
ed by inserting after the item relating to chapter 32 the 
following new item: 
‘‘33. Educational Assistance for Members of the Reserve 
Components ............................................................. 3301’’. 
(d) TECHNICAL AND CONFORMING AMENDMENTS.—
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(1) CONFORMING
AMENDMENTS
ON
BAR
ON 
DUAL ELIGIBILITY FOR BENEFITS.— 
(A) Section 3033 of title 38, United States 
Code, is amended— 
(i) in subsection (a)(1), by striking 
‘‘chapter 106 or 107 of title 10’’ and in-
serting ‘‘under subchapter I or subchapter 
II of chapter 33 of this title, under chapter 
107 of title 10’’; and 
(ii) in subsection (c), by striking 
‘‘chapter 106 of title 10’’ and inserting 
‘‘subchapter I of chapter 33 of this title’’. 
(B) Section 3221(f) of such title is amend-
ed by striking ‘‘chapter 106 of title 10’’ and in-
serting ‘‘subchapter I of chapter 33 of this 
title’’. 
(C) Section 3681 of such title is amend-
ed— 
(i) in subsection (a), by striking ‘‘34, 
35, or 36 of this title or 106 or 107 of title 
10,’’ and inserting ‘‘33, 34, 35, or 36 of 
this title’’; and 
(ii) in subsection (b)— 
(I) in paragraph (1), by inserting 
before the period the following: ‘‘, and
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subchapters I and II of chapter 33 of 
this title’’; and 
(II) in paragraph (2), by striking 
‘‘Chapters 106 and’’ and inserting 
‘‘Chapter’’. 
(2) CONFORMING AMENDMENTS RELATING TO 
DEPARTMENT
OF
DEFENSE
EDUCATION
BENEFITS 
FUND.— 
(A) DEFINITION OF ARMED FORCES EDU-
CATION LIABILITIES.—Paragraph (1) of section 
2006(b) of title 10, United States Code, is 
amended to read as follows: 
‘‘(1) The term ‘armed forces education liabil-
ities’ means liabilities of the armed forces for bene-
fits under chapter 30 and section 3301(i) of title 38 
and for Department of Defense benefits under para-
graphs (3) and (4) of section 510(e) of this title, in-
cluding funds provided by the Secretary of Home-
land Security for education liabilities for the Coast 
Guard when it is not operating as a service in the 
Department of the Navy.’’. 
(B) DEFINITION OF NORMAL COST.—Para-
graph (2) of such section is amended by strik-
ing subparagraph (C) and inserting the fol-
lowing new subparagraph:
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‘‘(C) The present value of the future De-
partment of Defense benefits payable from the 
Fund (including funds from the Department in 
which the Coast Guard is operating) for edu-
cational assistance under section 3301(i) of title 
38 to persons who during such period become 
entitled to such assistance.’’. 
(3) CROSS-REFERENCE AMENDMENTS.— 
(A) CHAPTER 106 OF TITLE 10, UNITED 
STATES CODE.— 
(i) Section 2131 of title 10, United 
States Code, is amended to read as follows: 
‘‘§ 2131. Reference to subchapter I of chapter 33 of 
title 38 
‘‘Provisions of law related to educational assistance 
for members of the Selected Reserve under the Mont-
gomery GI Bill program, as formerly set forth in this 
chapter and chapter 1606 of this title, are set forth in 
subchapter I of chapter 33 of title 38 (beginning with sec-
tion 3301 of title 38).’’. 
(ii) The table of sections at the begin-
ning of chapter 106 of such title is amend-
ed by striking the item relating to section 
2131 and inserting the following new item: 
‘‘2131. Reference to subchapter I of chapter 33 of title 38.’’.