I 
108TH CONGRESS 
2D SESSION 
H. R. 5239 
To amend titles 10 and 38, United States Code, to improve educational 
benefits for members of the Selected Reserve, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 6, 2004 
Mr. SMITH of New Jersey introduced the following bill; which was referred 
to the Committee on Armed Services, and in addition to the Committee 
on Veterans’ Affairs, 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 amend titles 10 and 38, United States Code, to improve 
educational benefits for members of the Selected Reserve, 
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 ‘‘National Guard and 
Reserve Education Act of 2004’’.
SEC. 2. INCREASE IN RATE OF EDUCATIONAL ASSISTANCE 
FOR MEMBERS OF THE SELECTED RESERVE 
AS ADMINISTERED BY THE SECRETARY OF 
VETERANS AFFAIRS. 
(a) INCREASE IN RATE OF ASSISTANCE.—Subsection 
(b)(1) of section 16131 of title 10, United States Code, 
is amended— 
(1) in subparagraph (A), by striking ‘‘$251’’ 
and inserting ‘‘$400’’; 
(2) by striking subparagraphs (B) and (C); 
(3) by redesignating subparagraph (D) as sub-
paragraph (B); and 
(4) in subparagraph (B), as so redesignated, by 
striking ‘‘for each month of less than half-time pur-
suit’’ and inserting ‘‘for each month of less than 
full-time pursuit’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply with respect to months begin-
ning after the date of the enactment of this Act. 
(c) NO CPI ADJUSTMENT FOR FISCAL YEAR 2005.— 
Paragraph (2) of section 16131(b) of such title shall not 
apply to rates of basic educational assistance paid under 
such section during fiscal year 2005.
SEC. 3. PAYMENT OF EDUCATIONAL ASSISTANCE FOR MEM-
BERS OF THE SELECTED RESERVE CALLED 
UP FOR SERVICE FOR CUMULATIVE PERIOD 
OF 180 DAYS OR MORE AT THE RATE APPLI-
CABLE UNDER CHAPTER 30 OF TITLE 38, 
UNITED STATES CODE. 
(a) INCREASE.—Section 16131 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new subsection: 
‘‘(j)(1) In the case of a person described in paragraph 
(2), the rate payable under subsection (b) or subsection 
(c) to such person for such educational assistance for each 
month shall be paid at the rate applicable under section 
3015(b) of title 38. 
‘‘(2) A person referred to in paragraph (1) is a per-
son who is entitled to educational assistance under this 
chapter— 
‘‘(A) who, on or after September 11, 2001, 
serves a period of active duty of at least 180 days 
of active duty pursuant to an order to serve on ac-
tive 
duty 
under 
section 
12301(a), 
12301(d), 
12301(g), 12302, or 12304 of this title during a five 
year period, or 
‘‘(B) in the case of a member of the Army Na-
tional Guard of the United States or Air National 
Guard of the United States, who, on or after Sep-
tember 11, 2001, performed full time National 
Guard duty under section 502(f) of title 32 for at 
least 180 days during a five year period when au-
thorized by the President or Secretary of Defense 
for the purpose of responding to a national emer-
gency declared by the President and supported by 
Federal funds.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply with respect to payments of edu-
cational assistance under chapter 1606 of such title for 
months beginning after September 30, 2004. 
SEC. 4. MODIFICATION OF DELIMITING DATE FOR USE OF 
ENTITLEMENT. 
(a) IN GENERAL.—Section 16133 of title 10, United 
States Code, is amended— 
(1) in subsection (a), by striking ‘‘subsection 
(b)’’ and inserting ‘‘subsections (b) and (c)’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(c) In the case of a person described in section 
16131(j)(2) of this title, the period during which such per-
son may use such person’s entitlement to educational as-
sistance under this chapter expires at the end of the 14- 
year period beginning on the date that is the last day of 
the person’s last duty referred to in such section.’’.
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect on September 30, 2004, 
and shall apply to members of the Selected Reserve enti-
tled to educational assistance under chapter 1606 of title 
10, United States Code, on or after that date. 
SEC. 5. AUTHORITY FOR MEMBERS OF THE SELECTED RE-
SERVE 
ENTITLED 
TO 
RETIRED 
PAY 
TO 
TRANSFER ENTITLEMENT TO BASIC EDU-
CATIONAL ASSISTANCE. 
(a) ESTABLISHMENT OF AUTHORITY TO TRANSFER 
ENTITLEMENT.—(1) Chapter 1606 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 16138. Transfer of entitlement to basic educational 
assistance by members of the Selected 
Reserve entitled to retired pay 
‘‘(a) IN GENERAL.—Subject to the provisions of this 
section, each Secretary concerned may permit an indi-
vidual described in subsection (b) who is entitled to basic 
educational assistance under this chapter to elect to trans-
fer to one or more of the dependents specified in sub-
section (c) a portion of such individual’s entitlement to 
such assistance. 
‘‘(b) ELIGIBLE
INDIVIDUALS.—An individual re-
ferred to in subsection (a) is an individual who—
‘‘(1) is entitled to retired pay under chapter 
1223; and 
‘‘(2) is entitled to educational assistance under 
this chapter. 
‘‘(c) ELIGIBLE DEPENDENTS.—An individual ap-
proved to transfer an entitlement to basic educational as-
sistance under this section may transfer the individual’s 
entitlement as follows: 
‘‘(1) To the individual’s spouse. 
‘‘(2) To one or more of the individual’s chil-
dren. 
‘‘(3) To a combination of the individuals re-
ferred to in paragraphs (1) and (2). 
‘‘(d) DESIGNATION OF TRANSFEREE.—An individual 
transferring an entitlement to basic educational assistance 
under this section shall— 
‘‘(1) designate the dependent or dependents to 
whom such entitlement is being transferred; 
‘‘(2) designate the number of months of such 
entitlement to be transferred to each such depend-
ent; and 
‘‘(3) specify the period for which the transfer 
shall be effective for each dependent designated 
under paragraph (1).
Each designation under this section shall be made in writ-
ing and shall be transmitted to the Secretary concerned 
and the Secretary of Veterans Affairs. 
‘‘(e) TIME FOR TRANSFER; REVOCATION AND MODI-
FICATION.—(1) Subject to the time limitation for use of 
entitlement under section 16133 of this title, an individual 
approved to transfer entitlement to basic educational as-
sistance under this section may transfer such entitlement 
at any time after the approval of the individual’s request 
to transfer such entitlement without regard to whether the 
individual is a member of the Armed Forces when the 
transfer is executed. 
‘‘(2)(A) An individual transferring entitlement under 
this section may modify or revoke at any time the transfer 
of any unused portion of the entitlement so transferred. 
‘‘(B) The modification or revocation of the transfer 
of entitlement under this paragraph shall be made by the 
submittal of written notice of the action to both the Sec-
retary concerned and the Secretary of Veterans Affairs. 
‘‘(f) COMMENCEMENT OF USE.—In the case of enti-
tlement transferred to a child to whom entitlement to 
basic educational assistance is transferred under this sec-
tion, the child may not commence the use of the trans-
ferred entitlement until either—
‘‘(1) the completion by the child of the require-
ments of a secondary school diploma (or equivalency 
certificate); or 
‘‘(2) the attainment by the child of 18 years of 
age. 
‘‘(g) ADDITIONAL ADMINISTRATIVE MATTERS.—(1) 
The use of any entitlement to basic educational assistance 
transferred under this section shall be charged against the 
entitlement of the individual making the transfer at the 
rate of one month for each month of transferred entitle-
ment that is used. 
‘‘(2) Except as provided under subsection (d)(2) and 
subject to paragraphs (4) and (5), a dependent to whom 
entitlement is transferred under this section is entitled to 
basic educational assistance under this chapter in the 
same manner and at the same rate as the individual from 
whom the entitlement was transferred. 
‘‘(3)(A) The death of an individual transferring an 
entitlement under this section shall not affect the use of 
the entitlement by the dependent to whom the entitlement 
is transferred. 
‘‘(B) Entitlement may only be transferred under this 
section before the date of death of the individual making 
the transfer.