lists or extends an enlistment for a period of one 
year; and 
‘‘(G) $6,000, in the case of a member who, hav-
ing received a bonus under this section for a pre-
vious one-, two-, or three-year reenlistment or exten-
sion of an enlistment, reenlists or extends the enlist-
ment for an additional period of one, two, or three 
years.’’. 
(d) AUTHORITY TO WAIVE ELIGIBILITY REQUIRE-
MENTS.—Subsection (c)(2) of such section is amended by 
striking ‘‘In the case’’ and all that follows through ‘‘the 
Secretary’’ and inserting ‘‘In time of war or national 
emergency, the Secretary’’. 
(e) DURATION OF AUTHORITY.—Subsection (g) of 
such section is amended by striking ‘‘2005’’ and inserting 
‘‘2006’’. 
(f) CONFORMING AMENDMENTS.—Subsection (c)(1) 
of such section is amended— 
(1) in the matter preceding subparagraph (A), 
by striking ‘‘subsection (b)(1)(C)’’ and inserting 
‘‘subsection (b)(1)(G)’’; and 
(2) in subparagraph (A), by striking ‘‘three 
years’’ and inserting ‘‘one, two, or three years’’.
SEC. 613. INCREASE IN AUTHORIZED MAXIMUM AMOUNT 
OF SELECTED RESERVE ENLISTMENT BONUS. 
Section 308c of title 37, United States Code, is 
amended— 
(1) in subsection (b), by striking ‘‘$10,000’’ 
and inserting ‘‘$32,000’’; and 
(2) in subsection (e), by striking ‘‘2005’’ and 
inserting ‘‘2006’’. 
SEC. 614. INCREASE IN AUTHORIZED MAXIMUM AMOUNT 
FOR RESERVE AFFILIATION BONUS UNDER 
RESERVE 
AFFILIATION 
AGREEMENTS 
EN-
TERED INTO DURING FISCAL YEAR 2006. 
(a) INCREASE.—Section 308e of title 37, United 
States Code, is amended by adding at the end the fol-
lowing new subsection: 
‘‘(h) Notwithstanding subsection (c), the maximum 
amount of the bonus that may be paid under this section 
pursuant to a reserve affiliation agreement entered into 
during fiscal year 2006 shall not exceed $15,000. The Sec-
retary of Defense, and the Secretary of Homeland Secu-
rity with respect to the Coast Guard, may amend the regu-
lations prescribed under subsection (f) to modify the meth-
od by which bonus payments will be made under such re-
serve affiliation agreements.’’.
(b) CONFORMING AMENDMENT.—Subsection (e) of 
such section is amended by striking ‘‘2005’’ and inserting 
‘‘2006’’. 
SEC. 615. INCREASE IN AUTHORIZED MAXIMUM AMOUNT 
OF GENERAL ENLISTMENT BONUS. 
Section 309 of title 37, United States Code, is 
amended— 
(1) in subsection (a), by striking ‘‘$20,000’’ 
and inserting ‘‘$50,000’’; and 
(2) in subsection (e), by striking ‘‘2005’’ and 
inserting ‘‘2006’’. 
SEC. 616. USE OF REFERRAL BONUS TO PROMOTE ENLIST-
MENTS IN SELECTED RESERVE. 
(a) BONUS AUTHORIZED.—Chapter 5 of title 37, 
United States Code, is amended by inserting after section 
308 the following new section: 
‘‘§ 308a. Selected Reserve referral bonus 
‘‘(a) BONUS
AUTHORIZED.—The Secretary con-
cerned may pay a referral bonus to a member of the Se-
lected Reserve who refers, to a member of the uniformed 
services assigned to recruiting duties, a person who, after 
such referral, enlists or is appointed, for a period of not 
less than two years, in the Selected Reserve of the same 
reserve component as the member making the referral.
‘‘(b) AMOUNT OF BONUS.—The referral bonus may 
not exceed $2,500 per referral. 
‘‘(c) RELATION TO PROHIBITION ON BOUNTIES.— 
The referral bonus authorized by this section is not a 
bounty for purposes of section 514(a) of title 10. 
‘‘(d) DURATION OF AUTHORITY.—A referral bonus 
may not be paid under this section with respect to any 
referral made after December 31, 2006.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the item relating to section 308 the following new 
item: 
‘‘308a. Selected Reserve referral bonus.’’. 
SEC. 617. EXTENSION OF ACTIVE-DUTY RETENTION BO-
NUSES AND SPECIAL PAYS FOR HEALTH 
CARE PROFESSIONALS TO RESERVE COMPO-
NENT OFFICERS. 
Section 303a of title 37, United States Code, is 
amended by adding at the end the following new sub-
section: 
‘‘(e) AVAILABILITY
FOR
RESERVE
COMPONENT 
HEALTH CARE PROFESSIONALS.—The Secretary of De-
fense shall modify the eligibility requirements for each spe-
cial pay authorized under sections 301d, 301e, 302 
through 302j, and 303 of this title as necessary to ensure 
that commissioned officers of the reserve components who
are not serving under a call or order to active duty, but 
who otherwise satisfy the eligibility requirements for the 
special pay, are eligible to receive the special pay in 
amounts, and under terms and conditions, comparable to 
those applicable to commissioned officers of the regular 
components. The requirements of this subsection are in 
addition to the policy expressed in section 302f of this title 
to expand the availability of certain special pays to reserve 
officers who are health care professionals. ’’. 
SEC. 618. CRITICAL-SKILLS ACCESSION BONUS FOR PER-
SONS ENROLLED IN SENIOR RESERVE OFFI-
CERS’ TRAINING CORPS WHO ARE OBTAINING 
NURSING DEGREES. 
(a) PROVISION OF BONUS IN REDUCED AMOUNT.— 
Section 324 of title 37, United States Code, as amended 
by section 614(f) of this Act, is further amended— 
(1) by redesignating subsections (f) and (g) as 
subsections (g) and (h), respectively; and 
(2) by inserting after subsection (e) the fol-
lowing new subsection: 
‘‘(f) NURSE CANDIDATES IN SENIOR RESERVE OFFI-
CERS’ TRAINING CORPS.—(1) A person enrolled in the 
Senior Reserve Officers’ Training Corps program of the 
Army for advanced training under chapter 103 of title 10, 
including a person receiving financial assistance under
section 2107 of such title, may receive an accession bonus 
under this section if the person— 
‘‘(A) has completed the second year of an ac-
credited baccalaureate degree program in nursing; 
and 
‘‘(B) executes an agreement under this section 
to serve on active duty as a commissioned officer in 
the Army Nurse Corps. 
‘‘(2) Notwithstanding subsection (c), the amount of 
the accession bonus paid to a person described in para-
graph (1) may not exceed $5,000. ’’. 
(b) 
RETROACTIVE
APPLICATION
TO
EXISTING 
AGREEMENTS.—Subsection (f) of section 324 of title 37, 
United States Code, as added by subsection (a), shall 
apply with respect to agreements referred to in paragraph 
(1)(B) of such subsection executed on or after October 5, 
2004. 
Subtitle C—Payment Matters 
SEC. 621. NONREDUCTION IN PAY WHILE FEDERAL EM-
PLOYEE IS SERVING ON ACTIVE DUTY IN A 
RESERVE COMPONENT OF THE UNIFORMED 
SERVICES. 
(a) IN GENERAL.—Subchapter IV of chapter 55 of 
title 5, United States Code, is amended by adding at the 
end the following new section:
‘‘§ 5538. Nonreduction in pay while serving on active 
duty in a reserve component 
‘‘(a) An employee who is also a member of a reserve 
component and is absent from a position of employment 
with the Federal Government under a call or order to 
serve on active duty for a period of more than 30 days 
shall be entitled to receive, for each pay period described 
in subsection (b), an amount equal to the difference (if 
any) between— 
‘‘(1) the amount of civilian basic pay that would 
otherwise have been payable to the employee for 
such pay period if the employee’s civilian employ-
ment with the Government had not been interrupted 
by the service on active duty; and 
‘‘(2) the amount of military compensation that 
is payable to the employee for the service on active 
duty and is allocable to such pay period. 
‘‘(b)(1) Amounts under this section shall be payable 
with respect to each pay period (which would otherwise 
apply if the employee’s civilian employment had not been 
interrupted) that occurs— 
‘‘(A) while the employee serves on active duty 
for a period of more than 30 days; 
‘‘(B) while the employee is hospitalized for, or 
convalescing from, an illness or injury incurred in,
or aggravated during, the performance of such active 
duty; or 
‘‘(C) during the 14-day period beginning at the 
end of such active duty or the end of the period re-
ferred to in subparagraph (B). 
‘‘(2) Paragraph (1) shall not apply with respect to 
a pay period for which the employee receives civilian basic 
pay (including by taking any annual, military, or other 
paid leave) to which the employee is entitled by virtue of 
the employee’s civilian employment with the Government. 
‘‘(c) Any amount payable under this section to an em-
ployee shall be paid— 
‘‘(1) by the employing agency of the employee; 
‘‘(2) from the appropriations or fund that 
would be used to pay the employee if the employee 
were in a pay status; and 
‘‘(3) to the extent practicable, at the same time 
and in the same manner as would civilian basic pay 
if the employee’s civilian employment had not been 
interrupted. 
‘‘(d) In consultation with Secretary of Defense, the 
Office of Personnel Management shall prescribe such reg-
ulations as may be necessary to carry out this section. 
‘‘(e) In consultation with the Office of Personnel 
Management, the head of each employing agency shall pre-