seriously injured during service in the Armed Forces, for 
the purpose of avoiding foreclosure on the mortgages. 
‘‘(2) An individual shall be eligible for assistance 
under this subsection only if— 
‘‘(A) the individual has been seriously injured 
while on active duty in the Armed Forces; and 
‘‘(B) the income of the individual is materially 
reduced (in the determination of the Secretary) be-
cause of such injury. 
‘‘(3) A mortgage shall be eligible for assistance under 
this subsection only if— 
‘‘(A) the mortgagor is an eligible member of the 
Armed Forces; and 
‘‘(B) the dwelling that secures the loan subject 
to the mortgage is the primary residence of the eligi-
ble member of the Armed Forces. 
‘‘(4)(A) Subject only to the availability of amounts 
provided under appropriations Acts, the Secretary shall 
provide assistance under this subsection in the form of 
monthly payments made by the Secretary to the mort-
gagee of an eligible mortgage on behalf of any eligible 
member of the Armed Forces. 
‘‘(B) Assistance payments under this paragraph shall 
be made for the 2-year period beginning upon the serious 
injury of the eligible member of the Armed Forces.
‘‘(C) Assistance payments under this paragraph shall 
be in the amount determined by the Secretary to be nec-
essary to pay any monthly charges during such period for 
principal, interest, taxes, assessments, ground rents, haz-
ard insurance, and mortgage insurance premiums (unless 
otherwise provided under section 222(c)), and may include 
an amount necessary to make the payments on the mort-
gage current. 
‘‘(5)(A) Subject only to the availability of amounts 
provided under appropriations Acts, the Secretary shall 
provide supplemental assistance under this subsection in 
the form of monthly supplemental payments made by the 
Secretary to the mortgagee of an eligible mortgage on be-
half of any eligible member of the Armed Forces. 
‘‘(B) Supplemental assistance payments under this 
paragraph shall be made for the period beginning upon 
the expiration of the 2-year period under paragraph 
(4)(B) and ending upon payment in full of the obligation 
under the eligible mortgage. 
‘‘(C) Supplemental assistance payments under this 
paragraph shall be made in the amount equal to the dif-
ference between— 
‘‘(i) the amount determined by the Secretary to 
be necessary to pay any monthly charges for prin-
cipal, interest, taxes, assessments, ground rents,
hazard insurance, and mortgage insurance premiums 
(unless otherwise provided under section 222(c)); 
and 
‘‘(ii) 30 percent of the monthly income of the 
household of the mortgagor. 
‘‘(D) Supplemental assistance payments under this 
paragraph may include an amount necessary to make the 
payments on the mortgage current. 
‘‘(6) The Secretary may prescribe additional require-
ments to carry out this subsection. 
‘‘(7) For purposes of this subsection: 
‘‘(A) The term ‘active duty’ means full-time 
duty in the active military service of the United 
States. The term includes full-time training duty, 
annual training duty, and attendance, while in the 
active military service, at a school designated as a 
service school by law or by the Secretary of the mili-
tary department concerned. 
‘‘(B) The term ‘Armed Forces’ means the 
Army, Navy, Air Force, Marine Corps, and Coast 
Guard, and includes members of the National Oce-
anic and Atmospheric Administration and the Public 
Health Service when assigned to and serving with 
the Armed Forces.
‘‘(C) The term ‘eligible member of the Armed 
Forces’ means an individual who meets the require-
ments under paragraph (2). 
‘‘(D) The term ‘eligible mortgage’ means a 
mortgage that meets the requirements under para-
graph (3). The term ‘mortgage’ means all first mort-
gages and includes mortgages not insured under this 
title. 
‘‘(E) The term ‘income’ means income from all 
sources and members of the household, including 
any benefits and annuities, as determined in accord-
ance with criteria prescribed by the Secretary. 
‘‘(8) There are authorized to be appropriated such 
sums as may be necessary to carry out this subsection.’’. 
(b) EFFECTIVE DATE.—Assistance may be provided 
under the amendments made by subsection (a) only with 
respect to eligible members of the Armed Forces seriously 
injured on or after September 11, 2001.
TITLE V—EDUCATION 
SEC. 501. REPEAL OF $1,200 REDUCTION IN BASIC PAY RE-
QUIRED FOR PARTICIPATION BY MEMBERS 
OF THE ARMED FORCES IN THE MONT-
GOMERY GI BILL EDUCATIONAL ASSISTANCE 
PROGRAM. 
Any reduction in the basic pay of an individual re-
ferred to in section 3011(b) of title 38, United States 
Code, by reason of such section 3011(b), or of any indi-
vidual referred to in section 3012(c) of such title by reason 
of such section 3012(c), as of the date of the enactment 
of this Act shall cease, commencing with the first month 
beginning after such date, and any obligation of such indi-
vidual under such section 3011(b) or 3012(c), as the case 
may be, as of the day before such date shall be considered 
to be fully satisfied as of such date.
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