cerned, shall submit to the Committee on Armed Services 
and the Committee on Veterans’ Affairs of the House of 
Representatives and the Committee on Armed Services 
and the Committee on Veterans’ Affairs of the Senate a 
report on the number of individuals transferring entitle-
ment to educational assistance under this section during 
the preceding fiscal year. 
‘‘(k) SECRETARY CONCERNED DEFINED.—Notwith-
standing section 101(25), in this section the term ‘Sec-
retary concerned’ means— 
‘‘(1) the Secretary of the Army with respect to 
matters concerning the Army; 
‘‘(2) the Secretary of the Navy with respect to 
matters concerning the Navy or the Marine Corps; 
‘‘(3) the Secretary of the Air Force with respect 
to matters concerning the Air Force; and 
‘‘(4) the Secretary of Defense with respect to 
matters concerning the Coast Guard, or the Sec-
retary of Homeland Security when it is not oper-
ating as a service in the Navy.’’; and 
(4) in section 3031(a) by inserting ‘‘in section 
3020 and’’ after ‘‘Except as provided’’. 
(b) EDUCATIONAL ASSISTANCE FOR MEMBERS OF 
THE SELECTED RESERVE.—Chapter 1606 of title 10, 
United States Code, is amended—
(1) in the table of sections by adding at the end 
the following new item: 
‘‘16138. Transfer of entitlement to educational assistance.’’; 
(2) in section 16133(a) by inserting ‘‘and sec-
tion 16138’’ after ‘‘subsection (b)’’; 
(3) in section 16137 by inserting ‘‘Each such 
report shall also include the number of members of 
the Selected Reserve of the Ready Reserve of each 
armed force transferring entitlement to educational 
assistance under section 16138.’’ after ‘‘those fiscal 
years.’’; and 
(4) by adding at the end the following new sec-
tion: 
‘‘§ 16138. Transfer of entitlement to educational as-
sistance 
‘‘(a) IN GENERAL.—An individual who is entitled to 
educational assistance under this chapter may elect to 
transfer to one or more of the dependents specified in sub-
section (b) a portion of such individual’s entitlement to 
such assistance. An individual transferring entitlement 
under this section shall submit written notice to the Sec-
retary concerned not later than the expiration date of the 
period described in section 16133 that is applicable to 
such individual. 
‘‘(b) ELIGIBLE DEPENDENTS.—An individual may 
transfer entitlement under this section 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). 
‘‘(c) DESIGNATION OF TRANSFEREE.—An individual 
transferring entitlement 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 such dependent. 
‘‘(d) REVOCATION
AND MODIFICATION.—An indi-
vidual transferring entitlement under this section may 
modify or revoke at any time the transfer of any unused 
portion of the entitlement so transferred. The modification 
or revocation of the transfer of entitlement under this sub-
section shall be made by the submittal of written notice 
of the action to both the Secretary concerned and the Sec-
retary of Veterans Affairs. 
‘‘(e) COMMENCEMENT OF USE.—If the dependent to 
whom entitlement is transferred under this section is a
child, the use of the transferred entitlement may not com-
mence until the child— 
‘‘(1) completes the requirements of a secondary 
school diploma (or equivalency certificate); or 
‘‘(2) attains 18 years of age. 
‘‘(f) TIME LIMITATION FOR USE OF ELIGIBILITY 
AND
ENTITLEMENT.—Notwithstanding section 16133, 
and subject to subsection (c)(3), a dependent to whom en-
titlement is transferred under this section may use such 
entitlement not later than— 
‘‘(1) the expiration date of a 20-year period be-
ginning on the commencement date of the period 
prescribed by section 16133(a)(1) that is applicable 
to the individual who transferred such entitlement to 
the dependent; or 
‘‘(2) the date that is 10 years after the date the 
individual who transferred such entitlement to the 
dependent is separated from the Selected Reserve, 
whichever occurs first. 
‘‘(g) ADDITIONAL ADMINISTRATIVE MATTERS.—(1) 
The use of any entitlement 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 entitlement that is used.
‘‘(2) Except as provided under subsections (c)(2) and 
(3) and (f), and subject to paragraph (5) of this sub-
section, a dependent to whom entitlement is transferred 
under this section is entitled to educational assistance 
under this chapter in the same manner as the individual 
from whom entitlement was transferred. 
‘‘(3) The monthly rate of educational assistance pay-
able to a dependent to whom entitlement is transferred 
under this section shall be the monthly amount payable 
under section 16131 to the individual making the transfer. 
‘‘(4) The death of an individual transferring entitle-
ment under this section shall not affect the use of the 
transferred entitlement by the dependent to whom entitle-
ment is transferred. 
‘‘(5) Notwithstanding subsection (f) and section 
16133, a child to whom entitlement is transferred under 
this section may not use any entitlement so transferred 
after attaining the age of 26 years. 
‘‘(6) Except as provided in subsection (e), the pur-
poses for which a dependent to whom entitlement is trans-
ferred under this section may use such entitlement shall 
include the pursuit and completion of the requirements of 
a secondary school diploma (or equivalency certificate). 
‘‘(h) OVERPAYMENT.—In the event of an overpay-
ment of basic educational assistance with respect to a de-
pendent to whom entitlement is transferred under this sec-
tion, the dependent and the individual making the transfer 
shall be jointly and severally liable to the United States 
for the amount of the overpayment for purposes of section 
3685 of title 38. 
‘‘(i) REGULATIONS.—The Secretaries concerned shall 
prescribe regulations for purposes of this section. 
‘‘(j) SECRETARY CONCERNED DEFINED.—Notwith-
standing section 101(a)(9), in this section the term ‘Sec-
retary concerned’ means— 
‘‘(1) the Secretary of the Army with respect to 
matters concerning the Army; 
‘‘(2) the Secretary of the Navy with respect to 
matters concerning the Navy or the Marine Corps; 
‘‘(3) the Secretary of the Air Force with respect 
to matters concerning the Air Force; and 
‘‘(4) the Secretary of Defense with respect to 
matters concerning the Coast Guard, or the Sec-
retary of Homeland Security when it is not oper-
ating as a service in the Navy.’’. 
SEC. 3. PROGRAM OF EDUCATION. 
(a) ALL-VOLUNTEER FORCE EDUCATIONAL ASSIST-
ANCE PROGRAM.—Chapter 30 of title 38, United States 
Code, is amended—