I 
109TH CONGRESS 
1ST SESSION H. R. 3625 
To provide that members of the Armed Forces and Selected Reserve may 
transfer certain educational assistance benefits to dependents, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 29, 2005 
Mr. BARTLETT of Maryland (for himself and Mr. ROSS) introduced the fol-
lowing bill; which was referred to the Committee on Veterans’ Affairs, 
and in addition to the Committee on Armed Services, 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 con-
cerned 
A BILL 
To provide that members of the Armed Forces and Selected 
Reserve may transfer certain educational assistance bene-
fits to dependents, 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; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Bartlett Montgomery GI Bill Act’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows:
Sec. 1. Short title; table of contents. 
TITLE I—ACTIVE DUTY PROGRAM 
Sec. 101. Transfer of entitlement to basic educational assistance under the 
Montgomery GI Bill. 
Sec. 102. Application of annual adjustment to rates of educational assistance 
based on average costs of higher learning. 
Sec. 103. Additional opportunity for certain VEAP participants to enroll in 
basic educational assistance under Montgomery GI Bill. 
Sec. 104. Reimbursement of reductions of basic pay. 
TITLE II—SELECTED RESERVE 
Sec. 201. Transfer of entitlement to educational assistance under the Reserve 
Montgomery GI Bill. 
Sec. 202. Credit for cumulative active duty service in the Selected Reserve. 
Sec. 203. Increase in rates of educational assistance under the Reserve Mont-
gomery GI Bill. 
TITLE III—SURVIVORS’ AND DEPENDENTS’ EDUCATIONAL 
ASSISTANCE 
Sec. 301. Application of annual adjustment to rates of educational assistance 
based on average costs of higher learning. 
TITLE I—ACTIVE DUTY 
PROGRAM 
SEC. 101. TRANSFER OF ENTITLEMENT TO BASIC EDU-
CATIONAL ASSISTANCE UNDER THE MONT-
GOMERY GI BILL. 
(a) ALL-VOLUNTEER FORCE EDUCATIONAL ASSIST-
ANCE PROGRAM.—(1) Section 3020 of title 38, United 
States Code, is amended to read as follows: 
‘‘§ 3020. Transfer of entitlement to basic Educational 
assistance 
‘‘(a) ELECTION TO TRANSFER ENTITLEMENT.—(1) 
An individual described in subsection (b) who is entitled 
to basic educational assistance under this subchapter may 
elect to transfer to one or more of the dependents specified
in subsection (c) a portion of such individual’s entitlement 
to such assistance. 
‘‘(2) An individual transferring entitlement under 
this section shall submit written notice to the Secretary 
concerned not later than the expiration date of the period 
described in section 3031 of this title that is applicable 
to such individual. 
‘‘(b) ELIGIBLE
INDIVIDUALS.—An individual re-
ferred to in subsection (a) is any member of the Armed 
Forces who, at the time of the approval by the Secretary 
concerned of the member’s request to transfer entitlement 
to basic educational assistance under this section— 
‘‘(1) has completed six years of service in the 
Armed Forces; and 
‘‘(2) enters into an agreement to serve at least 
four more years as a member of the Armed Forces. 
‘‘(c) 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). 
‘‘(d) 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. 
‘‘(e) 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. 
‘‘(f) 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. 
‘‘(g) TIME LIMITATION FOR USE OF ELIGIBILITY 
AND ENTITLEMENT.—Notwithstanding section 3031 of 
this title, and subject to subsection (d)(3), a dependent
to whom entitlement is transferred under this section may 
use such entitlement not later than the expiration date of 
a 15-year period beginning on the commencement date of 
the period described in section 3031 of this title that is 
applicable to the individual who transferred such entitle-
ment to the dependent. 
‘‘(h) 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 paragraphs (2) and 
(3) of subsection (d) and subsection (g), and subject to 
paragraph (5), a dependent to whom entitlement is trans-
ferred under this section is entitled to basic educational 
assistance under this subchapter in the same manner as 
the individual from whom entitlement was transferred. 
‘‘(3)(A) Subject to subparagraph (B), the monthly 
rate of educational assistance payable to a dependent to 
whom entitlement is transferred under this section shall 
be the monthly amount payable under sections 3015 and 
3022 of this title to the individual making the transfer. 
‘‘(B) The monthly rate of assistance payable to a de-
pendent under subparagraph (A) shall be subject to the 
provisions of section 3032 of this title, except that the pro-
visions of subsection (a)(1) of that section shall not apply 
even if the individual making the transfer to the dependent 
under this section is on active duty during all or any part 
of enrollment period of the dependent in which such enti-
tlement is used. 
‘‘(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 (g) and section 
3031 of this title, a child to whom entitlement is trans-
ferred under this section may not use any entitlement so 
transferred after attaining the age of 26 years. 
‘‘(6) Except as provided in subsection (f), 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). 
‘‘(i) OVERPAYMENT.—In the event of an overpayment 
of basic educational assistance with respect to a dependent 
to whom entitlement is transferred under this section, 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 this title.
‘‘(j) AUTHORITY FOR CERTAIN INDIVIDUALS WHO 
OPTED OUT OF EDUCATIONAL ASSISTANCE TO TRANS-
FER ENTITLEMENT.—(1) Subject to the succeeding provi-
sions of this subsection, a specified individual may elect 
to transfer to one or more of the dependents specified in 
subsection (c) such individual’s entitlement to such assist-
ance in the same manner, and under the same terms and 
conditions, that apply to an individual referred to in sub-
section (a). 
‘‘(2) In this subsection, the term ‘specified individual’ 
means an individual— 
‘‘(A) who made an election under section 
3011(c)(1) or 3012(d)(1) of this title, as the case 
may be; 
‘‘(B) who withdraws such election (in a form 
and manner determined by the Secretary concerned) 
not later than one year after the date of the enact-
ment of the Bartlett Montgomery GI Bill Act; 
‘‘(C) whose conditional delimiting period (as de-
scribed in paragraph (3)) has not expired; and 
‘‘(D) from whom the Secretary has reduced 
basic pay or collected payment as provided in para-
graph (4). 
‘‘(3) The conditional delimiting period referred to in 
paragraph (2)(C) is the period described in section 3031
of this title that would have been applicable to such indi-
vidual but for the election made by the individual under 
section 3011(c)(1) or 3012(d)(1) of this title, as the case 
may be. 
‘‘(4)(A) Subject to subparagraph (B), with respect to 
a specified individual who withdraws an election under 
paragraph (2)(B) to transfer entitlement to basic edu-
cational assistance under this subchapter, the basic pay 
of the specified individual shall be reduced (in a manner 
determined by the Secretary concerned) until the total 
amount by which such basic pay is reduced is $1,200. 
‘‘(B) To the extent that basic pay is not reduced 
under subparagraph (A) before the specified individual’s 
discharge or release from active duty, at the election of 
the specified individual— 
‘‘(i) the Secretary concerned shall collect from 
the specified individual; or 
‘‘(ii) the Secretary concerned shall reduce the 
retired or retainer pay of the specified individual by, 
an amount equal to the difference between $1,200 and the 
total amount of reductions under subparagraph (A), which 
shall be paid into the Treasury of the United States as 
miscellaneous receipts. 
‘‘(5) A specified individual may only transfer, and 
may not use, entitlement under this chapter.
‘‘(6) In carrying out this subsection— 
‘‘(A) the reference in subsection (a) to ‘not 
later than the expiration date of the period described 
in section 3031 of this title’ is deemed to be a ref-
erence to ‘during the one year period beginning on 
the date of the enactment of the Bartlett Mont-
gomery GI Bill Act’; and 
‘‘(B) the reference in subsection (f) to ‘com-
mencement date of the period described in section 
3031 of tis title’ is deemed to be a reference to the 
‘commencement date of the conditional delimiting 
period under subsection (i)(3)’. 
‘‘(k) REGULATIONS.—The Secretaries concerned 
shall prescribe regulations for purposes of this section. 
‘‘(l) ANNUAL REPORT.—Not later than January 31 
each year (beginning in 2007), the Secretary of Defense, 
in consultation with the other Secretaries concerned, shall 
submit to the Committees on Armed Services and the 
Committees on Veterans’ Affairs of the Senate and House 
of Representatives a report on the number of individuals 
transferring entitlement to educational assistance under 
this section during the preceding fiscal year. 
‘‘(m) 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.’’. 
(2) The table of sections at the beginning of chapter 
30 of such title is amended by striking the item relating 
to section 3020 and inserting the following: 
‘‘3020. Transfer of entitlement to basic educational assistance.’’. 
(b) CONFORMING AMENDMENT.—Subsection (a) of 
section 3031 is amended by inserting ‘‘in section 3020 of 
this title and’’. 
SEC. 102. APPLICATION OF ANNUAL ADJUSTMENT TO 
RATES OF EDUCATIONAL ASSISTANCE BASED 
ON AVERAGE COSTS OF HIGHER LEARNING. 
(a) IN GENERAL.—Section 3015(h) of title 38, 
United States Code, is amended to read as follows: 
‘‘(h)(1) With respect to any fiscal year, the Secretary 
shall provide a percentage increase (rounded to the near-
est dollar) in the rates payable under subsections (a)(1)
and (b)(1) equal to the percentage (as determined by the 
Secretary) by which— 
‘‘(A) the average monthly costs of tuition and 
expenses for commuter students at public institu-
tions of higher learning that award baccalaureate 
degrees for purposes of subsections (a)(1) and (b)(1) 
for the fiscal year involved, exceeds 
‘‘(B) such average monthly costs for the pre-
ceding fiscal year. 
‘‘(2) The Secretary shall make the determination 
under paragraph (1) after consultation with the Secretary 
of Education. 
‘‘(3) A determination made under paragraph (1) in 
a year shall take effect on October 1 of that year and 
apply with respect to basic educational assistance allow-
ances payable under this section for the fiscal year begin-
ning in that year. 
‘‘(4) Not later than September 30 each year, the Sec-
retary shall publish in the Federal Register the average 
monthly costs of tuition and expenses as determined under 
paragraph (1) in that year.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to payments for months begin-
ning after September 30, 2006.
SEC. 103. ADDITIONAL OPPORTUNITY FOR CERTAIN VEAP 
PARTICIPANTS TO ENROLL IN BASIC EDU-
CATIONAL 
ASSISTANCE 
UNDER 
MONT-
GOMERY GI BILL. 
(a) ADDITIONAL ONE-YEAR OPPORTUNITY TO EN-
ROLL.—Subsection (e) of section 3018C of title 38, United 
States Code, is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(6) In addition to the one-year period applica-
ble under paragraph (1), a qualified individual (de-
scribed in paragraph (2)) may make an irrevocable 
election under this subsection during the one-year 
period beginning on the date of the enactment of 
this paragraph, except that in applying this sub-
section as modified by this paragraph, the reference 
in paragraph (2)(B) to ‘April, 1, 2000,’ is deemed 
to be a reference to ‘April, 1, 2005’.’’. 
(b) CONFORMING AMENDMENTS.—Subsection (e)(3) 
of such section is amended by striking ‘‘under paragraph 
(1)’’ both places it appears and inserting ‘‘under this sub-
section’’. 
SEC. 104. REIMBURSEMENT OF REDUCTIONS OF BASIC PAY. 
(a) REIMBURSEMENT FOR EXTENDED ACTIVE DUTY 
SERVICE.—Sections 3011(b) and 3012(c) of title 38, 
United States Code, are each amended by adding at the 
end the following new paragraph:
‘‘(4)(A) Subject to subparagraph (C), in the case of 
an individual who, after the date of completion of the con-
tinuous period of active duty service applicable to the indi-
vidual under this section, continues to serve on active duty 
service, the Secretary shall pay to the individual $100 for 
each consecutive12-month period of active duty service 
served by the individual after such date. 
‘‘(B) In the case of an individual who was discharged 
or released from active duty for a condition described in 
section 3011(a)(1)(A)(i) of this title, the Secretary shall 
pay to such individual the aggregate amount of reductions 
in basic pay made under paragraph (1). 
‘‘(C) In no case may the amount of payments to an 
individual under subparagraph (A) exceed the amount of 
reductions made with respect to the individual under para-
graph (1).’’. 
(b) CONFORMING AMENDMENT.—Paragraph (2) of 
section 3017(b) of such title is amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(1); 
(2) by striking the period at the end of para-
graph (2) and inserting ‘‘; and’’; and 
(3) by adding at the end the following new 
paragraph:
‘‘(C) the amount of payments made to the 
individual 
under 
section 
3011(b)(4) 
or 
3012(c)(4) of this title (as the case may be).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to periods of active duty served 
on or after the date of the enactment of this Act. 
TITLE II—SELECTED RESERVE 
SEC. 201. TRANSFER OF ENTITLEMENT TO EDUCATIONAL 
ASSISTANCE UNDER THE RESERVE MONT-
GOMERY GI BILL. 
(a) SELECTED RESERVE.—(1) Chapter 1606 of title 
10, United States Code, is amended by adding at the end 
the following new section: 
‘‘§ 16138 Transfer of entitlement to educational assist-
ance 
‘‘(a) IN GENERAL.—An individual described in sub-
section (b) who is entitled to educational assistance under 
this chapter may elect to transfer to one or more of the 
dependents specified in subsection (c) a portion of such 
individual’s entitlement to such assistance. An individual 
transferring entitlement under this section shall submit 
written notice to the Secretary concerned not later than 
the expiration date of the period described in section 
16133 of this title that is applicable to such individual.