‘‘(ii) serves on active duty in the Armed
Forces and is discharged or released from ac-
tive duty—
‘‘(I) as provided in subclause (I) of
section 3011(a)(1)(A)(ii) of this title;
‘‘(II) for the convenience of the Gov-
ernment, after having completed not less
than 42 months of continuous active duty;
or
‘‘(III) as provided in subclause (III)
of section 3011(a)(1)(A)(ii) of this title.
‘‘(2) In determining service under paragraph (1), the
following rules apply:
‘‘(A) Any period of service described in para-
graph (2) or (3) of section 3011(d) of this title that
applies to an eligible individual under this section
shall not be considered a part of the individual’s pe-
riod of active duty.
‘‘(B) A member described in paragraph (2) of
section 3011(f) of this title who serves the periods
of active duty referred to in such paragraph shall be
deemed to have served a continuous period of active
duty the length of which is the aggregate length of
the periods of active duty referred to in such para-
graph.
‘‘(C) Subsections (g) and (h) of section 3011 of
this title apply with respect to an eligible individual
under this section in the same manner as they apply
to an individual under section 3011 of this title.
‘‘(d) ELECTION
OF BASIC EDUCATIONAL ASSIST-
ANCE.—(1) An eligible individual entitled to enhanced
educational assistance under this subchapter may elect (in
a form and manner prescribed by the Secretary) to receive
basic educational assistance under subchapter II in lieu
of such enhanced educational assistance for an enrollment
period. Such an election shall be made by not later than
30 days before the beginning of the enrollment period.
‘‘(2) An eligible individual may revoke an election
made pursuant to paragraph (1), but in no case may such
revocation be made later than 30 days before the begin-
ning of the enrollment period.
‘‘§ 3042. Duration of enhanced educational assistance
‘‘(a) IN GENERAL.—Subject to section 3695 of this
title and except as provided in subsection (b), each indi-
vidual entitled to enhanced educational assistance under
section 3041 of this title is entitled to a monthly enhanced
educational assistance allowance under this subchapter for
a period or periods not to exceed a total of 36 months
(or the equivalent thereof in part-time enhanced edu-
cational assistance).
‘‘(b) SPECIAL RULE FOR CERTAIN EARLY SEPARA-
TIONS.—Subject to section 3695 of this title, in the case
of an individual described in subclause (I) or (III) of sec-
tion 3041(c)(1)(B)(ii) of this title who does not serve a
continuous period of active duty of at least four years in
the 
Armed 
Forces 
(as 
described 
in 
section
3041(c)(1)(B)(i) of this title), the individual is entitled to
one month of enhanced educational assistance benefits
under this subchapter (not to exceed a total of 36 months
(or the equivalent thereof in part-time enhanced edu-
cational assistance)) for each month of continuous active
duty served by the individual beginning with the date on
which the entry on active duty, reenlistment, enlistment
extension, or continuation applicable to that individual
under section 3041(c)(1)(A) of this title begins.
‘‘§ 3043. Payment of educational expenses
‘‘(a) IN GENERAL.—(1) Subject to paragraph (2), the
Secretary shall pay to the educational institution providing
a course under an approved program of education to an
eligible individual under this subchapter who is enrolled
in the course the actual cost of tuition and fees otherwise
payable by the individual.
‘‘(2) Such cost may not exceed the amount charged
to similarly circumstanced nonveterans.
‘‘(b) STIPEND; COSTS OF BOOKS AND SUPPLIES.—
The Secretary shall pay to each eligible individual under
this subchapter who is pursuing an approved program of
education—
‘‘(1) a stipend as provided in section 3044 of
this title; and
‘‘(2) in accordance with regulations prescribed
by the Secretary, an amount equal to the average
cost of books and supplies payable by individuals
pursuing courses of education at educational institu-
tions.
‘‘(c) EXCLUSION FROM INCOME FOR ELIGIBILITY
DETERMINATIONS
FOR
FEDERAL
EDUCATIONAL
LOANS.—Notwithstanding any other provision of law,
amounts payable by the Secretary under this subchapter
with respect to an eligible individual shall not be consid-
ered as income for purposes of determining eligibility of
such individual for education grants or loans under any
other provision of Federal law.
‘‘§ 3044. Amount of stipend
‘‘(a) IN GENERAL.—Except as provided in section
3042 of this title, the stipend under this subchapter shall
be paid at a monthly rate (as that rate may be increased
pursuant to subsection (b)) as follows:
‘‘(1) At the monthly rate of $800 for an ap-
proved program of education pursued on a full-time
basis.
‘‘(2) At the monthly rate of $600 for an ap-
proved program of education pursued on a three-
quarter-time basis.
‘‘(3) At the monthly rate of $400 for an ap-
proved program of education pursued on a half-time
basis.
‘‘(4) At the monthly rate of $200 for an ap-
proved program of education pursued on less than a
half-time basis.
‘‘(b) ADJUSTMENT FOR INFLATION.—With respect to
any fiscal year beginning after fiscal year 2002, the Sec-
retary shall increase the rate paid under subsection (a)
for the previous fiscal year by the percentage applicable
under section 3015(h) of this title.
‘‘§ 3045. Tutorial assistance
‘‘An individual entitled to an enhanced educational
assistance allowance under this subchapter shall be enti-
tled to benefits provided an individual under section 3019
of this title, subject to the conditions provided in such sec-
tion.’’.
(b) CONFORMING AMENDMENTS.—(1) Section 3002
of such title is amended by inserting at the end the fol-
lowing new paragraph:
‘‘(9) The term ‘enhanced educational assistance’
means educational assistance provided under subchapter
V.’’.
(2) Section 3011 of such title is amended in sub-
section (f)(1) and (g) by striking ‘‘chapter’’ each place it
appears and inserting ‘‘subchapter’’.
(3) Section 3018A(a) of such title is amended by
striking ‘‘education assistance under this chapter’’ and in-
serting ‘‘educational assistance under this subchapter’’.
(4) Section 3018B of such title is amended by strik-
ing ‘‘education assistance under this chapter’’ each place
it appears and inserting ‘‘educational assistance under
this subchapter’’.
(5) Section 3018C of such title is amended by strik-
ing ‘‘educational assistance under this chapter’’ each place
it appears and inserting ‘‘educational assistance under
this subchapter’’.
(6) Section 3019 of such title is amended by striking
‘‘chapter’’ each place it appears and inserting ‘‘sub-
chapter’’.
(7) Section 3031 of such title is amended—
(A) in subsection (f), by inserting ‘‘or 3042 of
this title’’ after ‘‘section 3013’’ each place it ap-
pears; and
(B) in subsection (g), by inserting ‘‘or
3031(c)(1)(B)(ii)(III)’’ 
after 
‘‘section
3011(a)(1)(A)(ii)(III)’’.
(8) Section 3032(e)(3) of such title is amended by
inserting ‘‘, or section 3044(a)(1)’’ after ‘‘section 3015’’.
(c) CLERICAL AMENDMENT.—The table of sections
at the beginning of chapter 30 of title 38, United States
Code, is amended by adding at the end the following new
items:
‘‘SUBCHAPTER V—ENHANCED EDUCATIONAL ASSISTANCE
‘‘3041. Enhanced educational assistance entitlement.
‘‘3042. Duration of enhanced educational assistance.
‘‘3043. Payment of educational expenses.
‘‘3044. Amount of stipend.
‘‘3045. Tutorial assistance.’’.
SEC. 3. INCREASE IN RATES OF BASIC EDUCATIONAL AS-
SISTANCE UNDER MONTGOMERY GI BILL.
(a) ACTIVE DUTY EDUCATIONAL ASSISTANCE.—Sec-
tion 3015 of title 38, United States Code, is amended—
(1) in subsection (a)(1), by striking ‘‘$650’’ and
inserting ‘‘$900’’; and
(2) in subsection (b)(1), by striking ‘‘$528’’
and inserting ‘‘$730’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall take effect on October 1, 2001, and
shall apply with respect to educational assistance allow-
ances paid for months after September 2001.
SEC. 4. REPEAL OF PAY REDUCTION, ELECTION OF BENE-
FITS, AND HIGH SCHOOL GRADUATION RE-
QUIREMENT FOR PARTICIPATION IN BASIC
EDUCATIONAL ASSISTANCE UNDER MONT-
GOMERY GI BILL.
(a) REPEAL OF PAY REDUCTION AND ELECTION OF
BENEFITS.—
(1) ACTIVE DUTY PROGRAM.—(A) Section 3011
of title 38, United States Code, is amended—
(i) by striking subsection (b); and
(ii) in subsection (c), by striking paragraph
(1) and redesignating paragraphs (2) and (3)
as paragraphs (1) and (2), respectively.
(B) Section 3012 of such title is amended—
(i) by striking subsection (c); and
(ii) in subsection (d), by striking para-
graph (1) and redesignating paragraphs (2) and
(3) as paragraphs (1) and (2), respectively.
(2) OPPORTUNITIES TO WITHDRAW ELECTION
NOT TO ENROLL.—(A) Section 3016(a)(1) of such
title is amended by striking ‘‘, and does not make
an election under section 3011(c)(1) or section
3012(d)(1)’’.
(B) Sections 3018A and 3018B of such title
are each amended by adding at the end the following
new subsection:
‘‘(e) Notwithstanding subsection (b), no reduction in
the pay of an individual under this section shall be made
for months beginning after September 30, 2001. Any obli-
gation of such individual under subsection (b), as of Sep-
tember 30, 2001, shall be deemed to be fully satisfied as
of such date.’’.
(C)(i) Section 3018C(e) of such title is
amended—
(I) by striking paragraphs (3) and (4); and
(II) by redesignating paragraph (5) as
paragraph (3).
(ii) Section 3018C of such title is amended by
adding at the end the following new subsection:
‘‘(f) Notwithstanding subsection (b), no reduction in
the pay of an individual under this section shall be made
for months beginning after the date of the enactment of
the Montgomery GI Bill Improvements Act of 2001. Any
obligation of such individual under subsection (b), as of
such date, shall be deemed to be fully satisfied as of such
date.’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall take effect on October 1,
2001, and apply to individuals whose initial obli-
gated period of active duty under section 3011 or
3012 of title 38, United States Code, as the case
may be, begins on or after such date.
(4) TERMINATION
OF
PAY
REDUCTIONS
IN
PROGRESS.—Any reduction in the basic pay of an
individual referred to in subsection (b) of section
3011 of title 38, United States Code, by reason of
such subsection, or of any individual referred to in
subsection (c) of section 3012 of such title by reason
of such subsection, shall cease commencing with
months beginning after September 30, 2001, and
any obligation of such individual under such sub-
sections, as the case may be, as of September 30,
2001, shall be deemed to be fully satisfied as of such
date.
(b) REPEAL OF HIGH SCHOOL GRADUATION RE-
QUIREMENT.—
(1) ACTIVE DUTY.—(A) Section 3011(a) of title
38, United States Code, is amended—
(i) by striking paragraph (2); and
(ii) by redesignating paragraph (3) as
paragraph (2).
(B) Section 3012(a) of such title is amended—
(i) by striking paragraph (2); and
(ii) by redesignating paragraph (3) as
paragraph (2).
(2) OPPORTUNITIES TO WITHDRAW ELECTION
NOT TO ENROLL.—(A) Section 3018(b) of such title
is amended—
(i) by striking paragraph (4);
(ii) by inserting ‘‘and’’ at the end of para-
graph (3)(C); and
(iii) by redesignating paragraph (5) as
paragraph (4).
(B)(i) Section 3018A(a) of such title is
amended—
(I) by striking paragraph (2);
(II) by redesignating paragraphs (3), (4),
and (5) as paragraphs (2), (3), and (4), respec-
tively; and
(III) by striking ‘‘paragraph (3)’’ in para-
graphs (3) and (4), as so redesignated, and in-
serting ‘‘paragraph (2)’’.
(ii) Section 3018A(c) of such title is amended
by striking ‘‘subsection (a)(3) of this section’’ and
inserting ‘‘subsection (a)(2)’’.
(iii) Section 3018A(d)(1) of such title is amend-
ed by striking ‘‘subsection (a)(4) of this subsection’’
and inserting ‘‘subsection (a)(3)’’.
(C)(i) Section 3018B(a)(1) of such title is
amended—
(I) by striking subparagraph (B);
(II) by redesignating subparagraphs (C),
(D), and (E) as subparagraphs (B), (C), and
(D), respectively; and
(III) by striking ‘‘subparagraph (C)’’ in
subparagraphs (C) and (D), as so redesignated,
and inserting ‘‘subparagraph (B)’’.
(D)(i) Section 3018B(a)(2) of such title is
amended—
(I) by striking subparagraph (B);
(II) by redesignating subparagraphs (C),
(D), and (E) as subparagraphs (B), (C), and
(D), respectively;
(III) by striking ‘‘paragraph (1)(C) of this
subsection’’ in subparagraph (B), as so redesig-
nated, and inserting ‘‘paragraph (1)(B)’’; and
(IV) by striking ‘‘subparagraph (C)’’ in
subparagraphs (C) and (D), as so redesignated,
and inserting ‘‘subparagraph (B)’’.
(ii) Section 3018B(c) of such title is amended
by striking ‘‘subsection (a)(1)(C) or (a)(2)(C) of this
section’’ and inserting ‘‘subsection (a)(1)(B) or
(a)(2)(B)’’.
(iii) Section 3018B(d)(1) of such title is amend-
ed by striking ‘‘subsection (a)(1)(D) or (a)(2)(D) of
this section’’ and inserting ‘‘subsection (a)(1)(C) or
(a)(2)(C)’’.
(E)(i) Section 3018C(a) of such title is
amended—
(I) by striking paragraph (3);
(II) by redesignating paragraphs (4) and
(5) as paragraphs (3) and (4), respectively; and
(III) by striking ‘‘paragraph (5)’’ in para-
graph (3), as so redesignated, and inserting
‘‘paragraph (4)’’.
(ii) Section 3018C(b)(2) of such title is amend-
ed by striking ‘‘as specified in subsection (a)(4)’’
and inserting ‘‘as specified in subsection (a)(3)’’.
(iii) Section 3018C(c)(1) of such title is amend-
ed by striking ‘‘election described in subsection
(a)(5)’’ and inserting ‘‘election described in sub-
section (a)(4)’’.
(iv) Section 3018C(e)(1) of such title is amend-
ed by striking ‘‘elections made under subsection
(a)(5)’’ and inserting ‘‘elections made under sub-
section (a)(4)’’.
(v) Section 3018C(e)(2) of such title is
amended—
(I) by striking subparagraph (C); and
(II) by redesignating subparagraph (D) as
subparagraph (C).
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall take effect on the date of the
enactment of this Act and apply with respect to indi-
viduals applying for basic educational assistance
under chapter 30 of title 38, United States Code, on
or after such date.
(c) EDUCATION OUTREACH SERVICES TO MEMBERS
OF THE ARMED FORCES.—
(1) IN GENERAL.—Section 3034(e)(1) of title
38, United States Code, is amended to read as fol-
lows:
‘‘(e)(1) Not later than one year after an individual
initially enters on active duty as a member of the Armed
Forces, and at such additional times as the Secretary de-
termines appropriate, the Secretary shall furnish the indi-
vidual the information described in paragraph (2).’’.
(2) EFFECTIVE DATE.—The amendment made
by paragraph (1) shall take effect on October 1,
2001, and apply to individuals whose initial obli-
gated period of active duty under section 3011 or
3012 of title 38, United States Code, as the case
may be, begins on or after such date.
SEC. 5. AUTHORITY OF SECRETARY TO MAKE ACCELER-
ATED PAYMENTS OF BASIC EDUCATIONAL AS-
SISTANCE UNDER MONTGOMERY GI BILL.
(a) IN GENERAL.—Section 3014 of title 38 is amend-
ed by adding at the end the following new subsection:
‘‘(c) ACCELERATED
PAYMENT.—(1)(A) Notwith-
standing any other provision of this chapter and subject
to subparagraph (B), an individual entitled to basic edu-
cational assistance under this subchapter may elect to re-
ceive an accelerated payment of the basic educational as-
sistance allowance.
‘‘(B) The Secretary may not make an accelerated
payment for a course to an individual who has received
an advance payment under section 3680(d) of this title
for the same enrollment period.
‘‘(2)(A) Pursuant to an election under paragraph (1),
the Secretary shall make an accelerated payment to an
individual for a course in a lump-sum amount equal to
the lesser of—
‘‘(i) the amount of the educational assistance
allowance for the month, or fraction thereof, in
which the course begins plus the educational assist-
ance allowance for each of the succeeding four
months; or
‘‘(ii)(I) in the case of a course offered on a
quarter, semester, or term basis, the amount of ag-
gregate monthly educational assistance allowance
otherwise payable under this subchapter for the
course for the entire quarter, semester, or term; or
‘‘(II) in the case of a course that is not offered
on a quarter, semester, or term basis, the amount of
aggregate monthly educational assistance allowance
otherwise payable under this subchapter for the en-
tire course.
‘‘(B) In the case of an adjustment under section
3015(h) of this title in the monthly rate of basic edu-
cational assistance that occurs during a period for which
an accelerated payment is made under this subsection, the
Secretary shall pay—
‘‘(i) on an accelerated basis the amount of the
allowance otherwise payable under this subchapter
for the period without regard to the adjustment
under that section; and
‘‘(ii) on the date of the adjustment any addi-
tional amount of the allowance that is payable for
the period as a result of the adjustment.
‘‘(3) Pursuant to an election under paragraph (1),
the Secretary shall pay the accelerated payment to the in-
dividual for a course by not later than the date on which
the course begins.
‘‘(4) For each accelerated payment made to an indi-
vidual, the individual’s entitlement under this subchapter
shall be charged at the same rate at which the entitlement
would be charged if the individual had received a monthly
educational assistance allowance for the period of edu-
cational pursuit covered by the accelerated payment.
‘‘(5) The Secretary shall prescribe regulations to
carry out this subsection, and include in such regulations
the requirements, conditions, and methods for the request,
issuance, delivery, certification of receipt and use, and re-
covery of overpayment of an accelerated payment.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall take effect on March 1, 2002, and
apply with respect to courses of education beginning on
or after such date.
SEC. 6. AVAILABILITY OF MONTGOMERY GI BILL BENEFITS
FOR TRAINING FOR TECHNOLOGICAL OCCU-
PATIONS 
OFFERED 
BY 
ENTITIES 
OTHER
THAN EDUCATIONAL INSTITUTIONS.
(a) IN GENERAL.—Section 3452(c) of title 38,
United States Code, is amended to read as follows:
‘‘(c) The term ‘educational institution’ means—
‘‘(1) any public or private elementary school,
secondary school, vocational school, correspondence
school, business school, junior college, teachers’ col-
lege, college, normal school, professional school, uni-
versity, or scientific or technical institution, or other
institution furnishing education for adults;
‘‘(2) any entity that provides training required
for completion of any State-approved alternative
teacher certification program (as determined by the
Secretary); or
‘‘(3) any entity that provides, either directly or
under an agreement with another entity, training re-
quired for certification in a vocation or profession in
a technological occupation (as defined by the Sec-
retary).’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on October 1, 2001, and
applies with respect to training courses, approved by the
Secretary, for certification for technological occupations
beginning on or after such date.
Æ