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security studies, to graduates of the University who 
fulfill the requirements of the program at the School 
for National Security Executive Education.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of chapter 108 of such title is amended 
by striking the item relating to section 2163 and inserting 
the following new item: 
‘‘2163. National Defense University: master’s degree programs.’’. 
(c) APPLICABILITY
TO 2006-2007 GRADUATES.— 
Paragraph (4) of section 2163(b) of title 10, United 
States Code (as added by subsection (a) of this section), 
applies to any person who becomes a graduate on or after 
September 6, 2006. 
SEC. 525. RECODIFICATION IN TITLE 38, UNITED STATES 
CODE, OF CERTAIN EDUCATIONAL ASSIST-
ANCE PROGRAMS FOR MEMBERS OF THE RE-
SERVE COMPONENTS. 
(a) IN GENERAL.—Part III of title 38, United States 
Code, is amended by inserting after chapter 32 the fol-
lowing new chapter: 
‘‘CHAPTER 
33—EDUCATIONAL 
ASSIST-
ANCE FOR MEMBERS OF THE RE-
SERVE COMPONENTS 
‘‘SUBCHAPTER I—MEMBERS OF THE SELECTED RESERVE 
‘‘Sec. 
‘‘3301. Educational assistance program: establishment; amount. 
‘‘3302. Eligibility for educational assistance.
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‘‘3303. Time limitation for use of entitlement. 
‘‘3304. Termination of assistance. 
‘‘3305. Failure to participate satisfactorily; penalties. 
‘‘3306. Administration of program 
‘‘3307. Reports to Congress. 
‘‘SUBCHAPTER II—RESERVE COMPONENT MEMBERS SUPPORTING 
CONTINGENCY OPERATIONS AND CERTAIN OTHER OPERATIONS 
‘‘3321. Purpose. 
‘‘3322. Educational assistance program. 
‘‘3323. Eligibility for educational assistance. 
‘‘3324. Time limitation for use of entitlement. 
‘‘3325. Termination of assistance. 
‘‘3326. Administration of program. 
‘‘SUBCHAPTER I—MEMBERS OF THE SELECTED 
RESERVE 
‘‘§ 3301. Educational assistance program: establish-
ment; amount 
‘‘(a) ESTABLISHMENT.—To encourage membership 
in units of the Selected Reserve of the Ready Reserve, the 
Secretary of Veterans Affairs, shall establish and maintain 
a program to provide educational assistance to members 
of the Selected Reserve of the Ready Reserve of the Armed 
Forces. The Secretary of each military department shall, 
under regulations prescribed by the Secretary of Defense, 
provide to individuals who meet the eligibility require-
ments under section 3302 of this title the opportunity to 
receive educational assistance under this subchapter and 
shall maintain a program to increase the rate of edu-
cational assistance under this subchapter in accordance 
with subsection (i).
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‘‘(b) AMOUNT OF PAYMENT.—(1) Each educational 
assistance program established under subsection (a) shall 
provide for payment by the Secretary of Veterans Affairs 
of an educational assistance allowance to each person enti-
tled to educational assistance under this subchapter who 
is pursuing a program of education. Except as provided 
in subsections (d) through (f), the educational assistance 
allowance shall be paid at the rates in effect under the 
former chapter 1606 of title 10, as in effect immediately 
before the date of the enactment of the National Defense 
Authorization Act for Fiscal Year 2008, as increased 
under paragraph (3). 
‘‘(2) For each month of less than half-time pursuit 
of a program of education, educational assistance under 
this subchapter shall be paid at a rate of 25 percent of 
the amount payable for a month of full-time pursuit of 
a program of education, except that no payment may be 
made to a person for less than half-time pursuit if tuition 
assistance is otherwise available to the person for such 
pursuit from the military department concerned. 
‘‘(3) With respect to any fiscal year, the Secretary 
shall provide a percentage increase (rounded to the near-
est dollar) in the rates payable under subparagraphs (A), 
(B), and (C) of paragraph (1) equal to the percentage by 
which—