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(1) by striking ‘‘on active duty for a period of 
more than 30 days shall continue to receive’’ and in-
serting ‘‘shall receive’’; and 
(2) by inserting before the period at the end the 
following: ‘‘or at the rate provided for cadets and 
midshipmen under subsection (c), whichever is 
greater’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect on the first day of the first 
month beginning on or after the date of the enactment 
of this Act. 
SEC. 604. CLARIFICATION OF RESTRICTION ON COMPENSA-
TION FOR CORRESPONDENCE COURSES. 
Section 206(d)(1) of title 37, United States Code, is 
amended by inserting after ‘‘reserve component’’ the fol-
lowing: ‘‘or by a member of the National Guard while not 
in Federal service’’. 
SEC. 605. PERMANENT AUTHORITY FOR SUPPLEMENTAL 
SUBSISTENCE ALLOWANCE FOR LOW-INCOME 
MEMBERS WITH DEPENDENTS. 
(a) REPEAL OF TERMINATION PROVISION.—Section 
402a of title 37, United States Code, is amended by strik-
ing subsection (i). 
(b) TECHNICAL AND CONFORMING AMENDMENTS.— 
Subsection (f) of such section is amended—
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(1) in the first sentence, by striking ‘‘Secretary 
of Transportation’’ and inserting ‘‘Secretary of 
Homeland Security, with respect to the Coast 
Guard’’; and 
(2) by striking the second sentence. 
SEC. 606. BASIC ALLOWANCE FOR HOUSING FOR RESERVE 
MEMBERS. 
(a) EQUAL TREATMENT OF RESERVE MEMBERS.— 
Subsection (g) of section 403 of title 37, United States 
Code, is amended— 
(1) by redesignating paragraph (3) as para-
graph (4); 
(2) by inserting after paragraph (2) the fol-
lowing new paragraph (3): 
‘‘(3) The rate of basic allowance for housing to 
be paid to the following members of a reserve com-
ponent shall be equal to the rate in effect for simi-
larly situated members of a regular component of 
the uniformed services: 
‘‘(A) A member who is called or ordered to 
active duty for a period of more than 30 days. 
‘‘(B) A member who is called or ordered to 
active duty for a period of 30 days or less in 
support of a contingency operation.’’; and
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(3) in paragraph (4), as so redesignated, by 
striking ‘‘less than 140 days’’ and inserting ‘‘30 
days or less’’. 
(b) CONFORMING AMENDMENT REGARDING MEM-
BERS WITHOUT DEPENDENTS.—Paragraph (1) of such 
subsection is amended by inserting ‘‘or for a period of 
more than 30 days’’ after ‘‘in support of a contingency 
operation’’ both places it appears. 
SEC. 607. OVERSEAS COST OF LIVING ALLOWANCE. 
(a) PAYMENT OF ALLOWANCE BASED ON OVERSEAS 
LOCATION OF DEPENDENTS.—Section 405 of title 37, 
United States Code, is amended by adding at the end the 
following new subsection: 
‘‘(e) PAYMENT OF ALLOWANCE BASED ON OVERSEAS 
LOCATION OF DEPENDENTS.—In the case of a member 
assigned to duty inside the continental United States 
whose dependents continue to reside outside of the conti-
nental United States, the Secretary concerned may pay 
the member a per diem under this section based on the 
location of the dependents and provide reimbursement 
under subsection (d) for an unusual or extraordinary ex-
pense incurred by the dependents if the Secretary deter-
mines that such payment or reimbursement is in the best 
interest of the member or the member’s dependents and 
in the best interest of the United States.’’.
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(b) CLARIFICATION
OF EXPENSES ELIGIBLE
FOR 
LUMP-SUM REIMBURSEMENT.—Subsection (d) of such 
section, as added by section 605 of the Ronald W. Reagan 
National Defense Authorization Act for Fiscal Year 2005 
(Public Law 108–375; 118 Stat. 1945), is further amend-
ed— 
(1) in the subsection heading, by striking 
‘‘NONRECURRING’’ and inserting ‘‘UNUSUAL OR EX-
TRAORDINARY’’; 
(2) by inserting ‘‘or (e)’’ after ‘‘subsection (a)’’ 
each place it appears; and 
(3) in paragraph (1)— 
(A) by striking ‘‘a nonrecurring’’ and in-
serting ‘‘an unusual or extraordinary’’ in the 
matter preceding subparagraph (A); and 
(B) in subparagraph (A), by inserting ‘‘or 
the location of the member’s dependents’’ be-
fore the semicolon. 
SEC. 608. INCOME REPLACEMENT PAYMENTS FOR RE-
SERVES EXPERIENCING EXTENDED AND FRE-
QUENT MOBILIZATION FOR ACTIVE DUTY 
SERVICE. 
(a) IN GENERAL.—Chapter 19 of title 37, United 
States Code, is amended by adding at the end the fol-
lowing new section:
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‘‘§ 910. Replacement of lost income: involuntarily mo-
bilized reserve component members sub-
ject to extended and frequent active duty 
service 
‘‘(a) PAYMENT
REQUIRED.—The Secretary con-
cerned shall pay to an eligible member of a reserve compo-
nent of the armed forces an amount equal to the monthly 
active-duty income differential of the member, as deter-
mined by the Secretary. The payments shall be made on 
a monthly basis. 
‘‘(b) ELIGIBILITY.—Subject to subsection (c), a re-
serve component member is entitled to a payment under 
this section for any full month of active duty of the mem-
ber, while on active duty under an involuntary mobiliza-
tion order, following the date on which the member— 
‘‘(1) completes 18 continuous months of service 
on active duty under such an order; 
‘‘(2) completes 24 months on active duty during 
the previous 60 months under such an order; or 
‘‘(3) is involuntarily mobilized for service on ac-
tive duty six months or less following the member’s 
separation from the member’s previous period of ac-
tive duty. 
‘‘(c) 
MINIMUM
AND
MAXIMUM
PAYMENT 
AMOUNTS.—(1) A payment under this section shall be 
made to a member for a month only if the amount of the
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monthly active-duty income differential for the month is 
greater than $50. 
‘‘(2) Notwithstanding the amount determined under 
subsection (d) for a member for a month, the monthly pay-
ment to a member under this section may not exceed 
$3,000. 
‘‘(d) MONTHLY ACTIVE-DUTY INCOME DIFFEREN-
TIAL.—For purposes of this section, the monthly active- 
duty income differential of a member is the difference be-
tween— 
‘‘(1) the average monthly civilian income of the 
member; and 
‘‘(2) the member’s total monthly military com-
pensation. 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) The term ‘average monthly civilian in-
come’, with respect to a member of a reserve compo-
nent, means the amount, determined by the Sec-
retary concerned, of the earned income of the mem-
ber for either the 12 months preceding the member’s 
mobilization or the 12 months covered by the mem-
ber’s most recent Federal income tax filing, divided 
by 12.
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‘‘(2) The term ‘total monthly military com-
pensation’ means the amount, computed on a 
monthly basis, of the sum of— 
‘‘(A) the amount of the regular military 
compensation (RMC) of the member; and 
‘‘(B) any amount of special pay or incen-
tive pay and any allowance (other than an al-
lowance included in regular military compensa-
tion) that is paid to the member on a monthly 
basis.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item: 
‘‘910. Replacement of lost income: involuntarily mobilized reserve component 
members subject to extended and frequent active duty serv-
ice.’’. 
(c) EFFECTIVE DATE.—Section 910 of title 37, 
United States Code, as added by subsection (a), shall 
apply for months after December 2005. 
(d) LIMITATION
ON FISCAL YEAR 2006 OBLIGA-
TIONS.—During fiscal year 2006, obligations incurred 
under section 910 of title 37, United States Code, to pro-
vide income replacement payments to involuntarily mobi-
lized members of a reserve component who are subject to 
extended and frequent active duty service may not exceed 
$60,000,000.
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Subtitle B—Bonuses and Special 
and Incentive Pays 
SEC. 611. EXTENSION OR RESUMPTION OF CERTAIN BONUS 
AND SPECIAL PAY AUTHORITIES FOR RE-
SERVE FORCES. 
(a) SELECTED RESERVE REENLISTMENT BONUS.— 
Section 308b(g) of title 37, United States Code, is amend-
ed by striking ‘‘December 31, 2005’’ and inserting ‘‘De-
cember 31, 2006’’. 
(b) SPECIAL PAY
FOR ENLISTED MEMBERS AS-
SIGNED TO CERTAIN HIGH PRIORITY UNITS.—Section 
308d(c) of such title is amended by striking ‘‘December 
31, 2005’’ and inserting ‘‘December 31, 2006’’. 
(c) READY RESERVE ENLISTMENT BONUS FOR PER-
SONS WITHOUT PRIOR SERVICE.—Section 308g(h) of 
such title is amended by striking ‘‘September 30, 1992’’ 
and inserting ‘‘December 31, 2006’’. 
(d) READY RESERVE ENLISTMENT AND REENLIST-
MENT BONUS FOR PERSONS WITH PRIOR SERVICE.—Sec-
tion 308h(g) of such title is amended by striking ‘‘Decem-
ber 31, 2005’’ and inserting ‘‘December 31, 2006’’. 
(e) SELECTED RESERVE ENLISTMENT BONUS FOR 
PERSONS WITH PRIOR SERVICE.—Section 308i(f) of such 
title is amended by striking ‘‘December 31, 2005’’ and in-
serting ‘‘December 31, 2006’’.
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SEC. 612. EXTENSION OF CERTAIN BONUS AND SPECIAL 
PAY AUTHORITIES FOR CERTAIN HEALTH 
CARE PROFESSIONALS. 
(a) NURSE OFFICER CANDIDATE ACCESSION PRO-
GRAM.—Section 2130a(a)(1) of title 10, United States 
Code, is amended by striking ‘‘December 31, 2005’’ and 
inserting ‘‘December 31, 2006’’. 
(b) REPAYMENT OF EDUCATION LOANS FOR CER-
TAIN HEALTH PROFESSIONALS WHO SERVE IN THE SE-
LECTED RESERVE.—Section 16302(d) of such title is 
amended by striking ‘‘January 1, 2006’’ and inserting 
‘‘January 1, 2007’’. 
(c) ACCESSION BONUS FOR REGISTERED NURSES.— 
Section 302d(a)(1) of title 37, United States Code, is 
amended by striking ‘‘December 31, 2005’’ and inserting 
‘‘December 31, 2006’’. 
(d) INCENTIVE SPECIAL PAY
FOR NURSE ANES-
THETISTS.—Section 302e(a)(1) of such title is amended 
by striking ‘‘December 31, 2005’’ and inserting ‘‘Decem-
ber 31, 2006’’. 
(e) SPECIAL PAY FOR SELECTED RESERVE HEALTH 
PROFESSIONALS IN CRITICALLY SHORT WARTIME SPE-
CIALTIES.—Section 302g(f) of such title is amended by 
striking ‘‘December 31, 2005’’ and inserting ‘‘December 
31, 2006’’.
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(f) ACCESSION BONUS FOR DENTAL OFFICERS.— 
Section 302h(a)(1) of such title is amended by striking 
‘‘December 31, 2005’’ and inserting ‘‘December 31, 
2006’’. 
(g) ACCESSION BONUS FOR PHARMACY OFFICERS.— 
Section 302j(a) of such title is amended by striking ‘‘De-
cember 31, 2005’’ and inserting ‘‘December 31, 2006’’. 
SEC. 613. EXTENSION OF SPECIAL PAY AND BONUS AU-
THORITIES FOR NUCLEAR OFFICERS. 
(a) SPECIAL PAY FOR NUCLEAR-QUALIFIED OFFI-
CERS EXTENDING PERIOD OF ACTIVE SERVICE.—Section 
312(e) of title 37, United States Code, is amended by 
striking ‘‘December 31, 2005’’ and inserting ‘‘December 
31, 2006’’. 
(b) NUCLEAR CAREER ACCESSION BONUS.—Section 
312b(c) of such title is amended by striking ‘‘December 
31, 2005’’ and inserting ‘‘December 31, 2006’’. 
(c) 
NUCLEAR
CAREER
ANNUAL
INCENTIVE 
BONUS.—Section 312c(d) of such title is amended by 
striking ‘‘December 31, 2005’’ and inserting ‘‘December 
31, 2006’’. 
SEC. 614. ONE-YEAR EXTENSION OF OTHER BONUS AND 
SPECIAL PAY AUTHORITIES. 
(a) AVIATION OFFICER RETENTION BONUS.—Sec-
tion 301b(a) of title 37, United States Code, is amended