(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
after the item relating to section 3122 the following new 
item: 
‘‘3123. Calculation of rate of veterans rehabilitated to the point of employ-
ability.’’. 
SEC. 3. APPROVAL OF COURSES OF EDUCATION AND 
TRAINING FOR PURPOSES OF THE VOCA-
TIONAL REHABILITATION PROGRAM OF THE 
DEPARTMENT OF VETERANS AFFAIRS. 
(a) IN GENERAL.—Section 3104(b) of title 38, 
United States Code, is amended by adding at the end the 
following new sentence: ‘‘To the maximum extent prac-
ticable, a course of education or training may be pursued 
by a veteran as part of a rehabilitation program under 
this chapter only if the course is approved for purposes 
of chapter 30 or 33 of this title. The Secretary may waive 
the requirement under the preceding sentence to the ex-
tent the Secretary determines appropriate.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply with respect to a course of edu-
cation or training pursued by a veteran who first begins 
a program of rehabilitation under chapter 31 of title 38, 
United States Code, on or after the date that is one year 
after the date of the enactment of this Act. 
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SEC. 4. ELIGIBILITY OF CERTAIN VETERANS ENROLLED IN 
VOCATIONAL 
REHABILITATION 
PROGRAMS 
FOR SPECIALLY ADAPTED HOUSING PRO-
VIDED BY THE SECRETARY OF VETERANS AF-
FAIRS. 
Section 2101(b)(2) of title 38, United States Code, 
is amended by adding at the end the following new sub-
paragraph: 
‘‘(D) The disability is a disability for which the 
veteran is eligible for a rehabilitation program under 
chapter 31 of this title and is referred for assistance 
under this section pursuant to section 2107 of this 
title.’’. 
SEC. 5. AUTHORITY TO PRIORITIZE VOCATIONAL REHA-
BILITATION SERVICES BASED ON NEED. 
Section 3104 of title 38, United States Code, as 
amended by section 3, is further amended by adding at 
the end the following new subsection: 
‘‘(c)(1) The Secretary shall have the authority to ad-
minister this chapter by prioritizing the provision of serv-
ices under this chapter based on need, as determined by 
the Secretary. In evaluating need for purposes of this sub-
section, the Secretary shall consider disability ratings, the 
severity of employment handicaps, qualification for a pro-
gram of independent living, income, and any other factor 
the Secretary determines appropriate. 
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‘‘(2) Not later than 90 days before making any 
changes to the prioritization of the provision of services 
under this chapter as authorized under paragraph (1), the 
Secretary shall submit to Congress a plan describing such 
changes.’’. 
SEC. 6. MODIFICATION OF DEFINITION OF ‘‘SERIOUS EM-
PLOYMENT HANDICAP’’. 
Paragraph (7) of section 3101 of title 38, United 
States Code, is amended to read as follows: 
‘‘(7) The term ‘serious employment handicap’ 
means a significant impairment, resulting from the 
service-connected disability, that is directly related 
to the veteran’s ability to prepare for, obtain, or re-
tain employment consistent with such veteran’s abili-
ties, aptitudes, and interests.’’. 
Æ 
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