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scribed in subsection (a) of a member of the Selected Re-
serve.
‘‘(2) Subject to paragraphs (3)(B) and (4), the Sec-
retary of a military department may pay the charges of
an educational institution for the tuition or expenses de-
scribed in subsection (a) of a member of the Individual
Ready Reserve who has a military occupational specialty
designated by the Secretary for purposes of this subsection.
‘‘(3)(A) The Secretary of a military department may
not pay charges under paragraph (1) for tuition or expenses
of an officer of the Selected Reserve unless the officer agrees
to remain a member of the Selected Reserve for at least four
years after completion of the education or training for
which the charges are paid.
‘‘(B) The Secretary of a military department may not
pay charges under paragraph (2) for tuition or expenses
of an officer of the Individual Ready Reserve unless the offi-
cer agrees to remain in the Selected Reserve or Individual
Ready Reserve for at least four years after completion of
the education or training for which the charges are paid.
‘‘(4) The Secretary of a military department may re-
quire enlisted members of the Selected Reserve or Individual
Ready Reserve to agree to serve for up to four years in the
Selected Reserve or Individual Ready Reserve, as the case
may be, after completion of education or training for which
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tuition or expenses are paid under paragraph (1) or (2),
as applicable.’’.
(2) REPEAL OF SUPERSEDED PROVISION.—Such
section is further amended—
(A) by striking subsection (d); and
(B) by redesignating subsections (e) and (f)
as subsections (d) and (e), respectively.
(3) REPAYMENT OF UNEARNED BENEFIT.—Sub-
section (e) of such section, as redesignated by para-
graph (2) of this subsection, is amended—
(A) by inserting ‘‘(1)’’ after ‘‘(e)’’; and
(B) by adding at the end the following new
paragraph:
‘‘(2) If a member of the Ready Reserve who enters into
an agreement under subsection (c) does not complete the pe-
riod of service specified in the agreement, the member shall
be subject to the repayment provisions of section 303a(e)
of title 37.’’.
(c) REGULATIONS.—Such section is further amended
by adding at the end the following new subsection:
‘‘(f) This section shall be administered under regula-
tions prescribed by the Secretary of Defense and the Sec-
retary of Homeland Security for the Coast Guard when it
is not operating as a service in the Navy.’’.
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SEC. 672. EXPANSION OF SELECTED RESERVE EDUCATION
LOAN REPAYMENT PROGRAM.
(a) ADDITIONAL LOANS ELIGIBLE FOR REPAYMENT.—
Paragraph (1) of subsection (a) of section 16301 of title 10,
United States Code, is amended—
(1) in subparagraph (B), by striking ‘‘or’’ at the
end;
(2) in subparagraph (C), by striking the period
at the end and inserting ‘‘; or’’; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(D) any loan incurred for educational purposes
made by a lender that is—
‘‘(i) an agency or instrumentality of a
State;
‘‘(ii) a financial or credit institution (in-
cluding an insurance company) that is subject to
examination and supervision by an agency of
the United States or any State;
‘‘(iii) a pension fund approved by the Sec-
retary for purposes of this section; or
‘‘(iv) a nonprofit private entity designated
by a State, regulated by such State, and ap-
proved by the Secretary for purposes of this sec-
tion.’’.
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(b) ELIGIBILITY OF OFFICERS.—Such subsection is
further amended—
(1) in paragraph (2)—
(A) by striking ‘‘Except as provided in
paragraph (3), the Secretary’’ and inserting
‘‘The Secretary’’; and
(B) by striking ‘‘an enlisted member of the
Selected Reserve of the Ready Reserve of an
armed force in a reserve component and military
specialty’’ and inserting ‘‘a member of the Se-
lected Reserve of the Ready Reserve of an armed
force in a reserve component and officer program
or military specialty’’; and
(2) by striking paragraph (3).
(c) CONFORMING AMENDMENT.—The heading of such
section is amended to read as follows:
‘‘§ 16301. Education loan repayment program: mem-
bers of the Selected Reserve’’.
(d) CLERICAL AMENDMENT.—The table of sections at
the beginning of chapter 1609 of such title is amended by
striking the item relating to section 16301 and inserting
the following new item:
‘‘16301. Education loan repayment program: members of the Selected Reserve.’’.
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SEC. 673. REPORT ON UTILIZATION OF TUITION ASSIST-
ANCE BY MEMBERS OF THE ARMED FORCES.
(a) REPORTS REQUIRED.—Not later than April 1,
2008, the Secretary of each military department shall sub-
mit to the congressional defense committees a report on the
utilization of tuition assistance by members of the Armed
Forces, whether in the regular components if the Armed
Forces or the reserve components of the Armed Forces, under
the jurisdiction of such military department during fiscal
year 2007.
(b) ELEMENTS.—The report with respect to a military
department under subsection (a) shall include the following:
(1) Information on the policies of such military
department for fiscal year 2007 regarding utilization
of, and limits on, tuition assistance by members of the
Armed Forces under the jurisdiction of such military
department, including an estimate of the number of
members of the reserve components of the Armed
Forces under the jurisdiction of such military depart-
ment whose requests for tuition assistance during that
fiscal year were unfunded.
(2) Information on the policies of such military
department for fiscal year 2007 regarding funding of
tuition assistance for each of the regular components
of the Armed Forces and each of the reserve compo-
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nents of the Armed Forces under the jurisdiction of
such military department.
SEC. 674. ENHANCEMENT OF EDUCATION BENEFITS FOR
CERTAIN MEMBERS OF RESERVE COMPO-
NENTS.
(a) ACCELERATED PAYMENT OF EDUCATIONAL AS-
SISTANCE FOR MEMBERS OF THE SELECTED RESERVE.—
(1) IN
GENERAL.—Chapter 1606 of title 10,
United States Code, is amended by inserting after sec-
tion 16131 the following new section:
‘‘§ 16131A. Accelerated payment of educational assist-
ance
‘‘(a) The educational assistance allowance payable
under section 16131 of this title with respect to an eligible
person described in subsection (b) may, upon the election
of such eligible person, be paid on an accelerated basis in
accordance with this section.
‘‘(b) An eligible person described in this subsection is
a person entitled to educational assistance under this chap-
ter who is—
‘‘(1) enrolled in an approved program of edu-
cation not exceeding two years in duration and not
leading to an associate, bachelors, masters, or other
degree, subject to subsection (g); and
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‘‘(2) charged tuition and fees for the program of
education that, when divided by the number of
months (and fractions thereof) in the enrollment pe-
riod, exceeds the amount equal to 200 percent of the
monthly rate of educational assistance allowance oth-
erwise payable with respect to the person under sec-
tion 16131 of this title.
‘‘(c)(1) The amount of the accelerated payment of edu-
cational assistance payable with respect to an eligible per-
son making an election under subsection (a) for a program
of education shall be the lesser of—
‘‘(A) the amount equal to 60 percent of the estab-
lished charges for the program of education; or
‘‘(B) the aggregate amount of educational assist-
ance allowance to which the person remains entitled
under this chapter at the time of the payment.
‘‘(2)(A) In this subsection, except as provided in sub-
paragraph (B), the term ‘established charges’, in the case
of a program of education, means the actual charges (as
determined pursuant to regulations prescribed by the Sec-
retary) for tuition and fees which similarly circumstanced
individuals who are not eligible for benefits under this
chapter and who are enrolled in the program of education
would be required to pay. Established charges shall be deter-
mined on the following basis:
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‘‘(i) In the case of an individual enrolled in a
program of education offered on a term, quarter, or
semester basis, the tuition and fees charged the indi-
vidual for the term, quarter, or semester.
‘‘(ii) In the case of an individual enrolled in a
program of education not offered on a term, quarter,
or semester basis, the tuition and fees charged the in-
dividual for the entire program of education.
‘‘(B) In this subsection, the term ‘established charges’
does not include any fees or payments attributable to the
purchase of a vehicle.
‘‘(3) The educational institution providing the pro-
gram of education for which an accelerated payment of edu-
cational assistance allowance is elected by an eligible person
under subsection (a) shall certify to the Secretary of Vet-
erans Affairs the amount of the established charges for the
program of education.
‘‘(d) An accelerated payment of educational assistance
allowance made with respect to an eligible person under this
section for a program of education shall be made not later
than the last day of the month immediately following the
month in which the Secretary of Veterans Affairs receives
a certification from the educational institution regarding—
‘‘(1) the person’s enrollment in and pursuit of
the program of education; and
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‘‘(2) the amount of the established charges for the
program of education.
‘‘(e)(1) Except as provided in paragraph (2), for each
accelerated payment of educational assistance allowance
made with respect to an eligible person under this section,
the person’s entitlement to educational assistance under this
chapter shall be charged the number of months (and any
fraction thereof) determined by dividing the amount of the
accelerated payment by the full-time monthly rate of edu-
cational assistance allowance otherwise payable with re-
spect to the person under section 16131 of this title as of
the beginning date of the enrollment period for the program
of education for which the accelerated payment is made.
‘‘(2) If the monthly rate of educational assistance al-
lowance otherwise payable with respect to an eligible person
under section 16131 of this title increases during the enroll-
ment period of a program of education for which an acceler-
ated payment of educational assistance allowance is made
under this section, the charge to the person’s entitlement
to educational assistance under this chapter shall be deter-
mined by prorating the entitlement chargeable, in the man-
ner provided for under paragraph (1), for the periods cov-
ered by the initial rate and increased rate, respectively, in
accordance with regulations prescribed by the Secretary of
Veterans Affairs.
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‘‘(f) The Secretary of Veterans Affairs shall prescribe
regulations to carry out this section. The regulations shall
include requirements, conditions, and methods for the re-
quest, issuance, delivery, certification of receipt and use,
and recovery of overpayment of an accelerated payment of
educational assistance allowance under this section. The
regulations may include such elements of the regulations
prescribed under section 3014A of title 38 as the Secretary
of Veterans Affairs considers appropriate for purposes of
this section.
‘‘(g) The aggregate amount of educational assistance
payable under this section in any fiscal year for enroll-
ments covered by subsection (b)(1) may not exceed
$4,000,000.’’.
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 1606 of such title is
amended by inserting after the item relating to sec-
tion 16131 the following new item:
‘‘16131A. Accelerated payment of educational assistance.’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall take effect on October 1, 2008,
and shall only apply to initial enrollments in ap-
proved programs of education after such date.
(b) ACCELERATED PAYMENT OF EDUCATIONAL AS-
SISTANCE
FOR RESERVE COMPONENT MEMBERS SUP-
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PORTING CONTINGENCY OPERATIONS AND OTHER OPER-
ATIONS.—
(1) IN
GENERAL.—Chapter 1607 of title 10,
United States Code, is amended by inserting after sec-
tion 16162 the following new section:
‘‘§ 16162A. Accelerated payment of educational assist-
ance
‘‘(a) The educational assistance allowance payable
under section 16162 of this title with respect to an eligible
member described in subsection (b) may, upon the election
of such eligible member, be paid on an accelerated basis in
accordance with this section.
‘‘(b) An eligible member described in this subsection
is a member of a reserve component entitled to educational
assistance under this chapter who is—
‘‘(1) enrolled in an approved program of edu-
cation not exceeding two years in duration and not
leading to an associate, bachelors, masters, or other
degree, subject to subsection (g); and
‘‘(2) charged tuition and fees for the program of
education that, when divided by the number of
months (and fractions thereof) in the enrollment pe-
riod, exceeds the amount equal to 200 percent of the
monthly rate of educational assistance allowance oth-
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erwise payable with respect to the member under sec-
tion 16162 of this title.
‘‘(c)(1) The amount of the accelerated payment of edu-
cational assistance payable with respect to an eligible mem-
ber making an election under subsection (a) for a program
of education shall be the lesser of—
‘‘(A) the amount equal to 60 percent of the estab-
lished charges for the program of education; or
‘‘(B) the aggregate amount of educational assist-
ance allowance to which the member remains entitled
under this chapter at the time of the payment.
‘‘(2)(A) In this subsection, except as provided in sub-
paragraph (B), the term ‘established charges’, in the case
of a program of education, means the actual charges (as
determined pursuant to regulations prescribed by the Sec-
retary) for tuition and fees which similarly circumstanced
individuals who are not eligible for benefits under this
chapter and who are enrolled in the program of education
would be required to pay. Established charges shall be deter-
mined on the following basis:
‘‘(i) In the case of an individual enrolled in a
program of education offered on a term, quarter, or
semester basis, the tuition and fees charged the indi-
vidual for the term, quarter, or semester.
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‘‘(ii) In the case of an individual enrolled in a
program of education not offered on a term, quarter,
or semester basis, the tuition and fees charged the in-
dividual for the entire program of education.
‘‘(B) In this subsection, the term ‘established charges’
does not include any fees or payments attributable to the
purchase of a vehicle.
‘‘(3) The educational institution providing the pro-
gram of education for which an accelerated payment of edu-
cational assistance allowance is elected by an eligible mem-
ber under subsection (a) shall certify to the Secretary of
Veterans Affairs the amount of the established charges for
the program of education.
‘‘(d) An accelerated payment of educational assistance
allowance made with respect to an eligible member under
this section for a program of education shall be made not
later than the last day of the month immediately following
the month in which the Secretary of Veterans Affairs re-
ceives a certification from the educational institution
regarding—
‘‘(1) the member’s enrollment in and pursuit of
the program of education; and
‘‘(2) the amount of the established charges for the
program of education.
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‘‘(e)(1) Except as provided in paragraph (2), for each
accelerated payment of educational assistance allowance
made with respect to an eligible member under this section,
the member’s entitlement to educational assistance under
this chapter shall be charged the number of months (and
any fraction thereof) determined by dividing the amount
of the accelerated payment by the full-time monthly rate
of educational assistance allowance otherwise payable with
respect to the member under section 16162 of this title as
of the beginning date of the enrollment period for the pro-
gram of education for which the accelerated payment is
made.
‘‘(2) If the monthly rate of educational assistance al-
lowance otherwise payable with respect to an eligible mem-
ber under section 16162 of this title increases during the
enrollment period of a program of education for which an
accelerated payment of educational assistance allowance is
made under this section, the charge to the member’s entitle-
ment to educational assistance under this chapter shall be
determined by prorating the entitlement chargeable, in the
manner provided for under paragraph (1), for the periods
covered by the initial rate and increased rate, respectively,
in accordance with regulations prescribed by the Secretary
of Veterans Affairs.
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‘‘(f) The Secretary of Veterans Affairs shall prescribe
regulations to carry out this section. The regulations shall
include requirements, conditions, and methods for the re-
quest, issuance, delivery, certification of receipt and use,
and recovery of overpayment of an accelerated payment of
educational assistance allowance under this section. The
regulations may include such elements of the regulations
prescribed under section 3014A of title 38 as the Secretary
of Veterans Affairs considers appropriate for purposes of
this section.
‘‘(g) The aggregate amount of educational assistance
payable under this section in any fiscal year for enroll-
ments covered by subsection (b)(1) may not exceed
$3,000,000.’’.
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 1607 of such title is
amended by inserting after the item relating to sec-
tion 16162 the following new item:
‘‘16162A. Accelerated payment of educational assistance.’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall take effect on October 1, 2008,
and shall only apply to initial enrollments in ap-
proved programs of education after such date.
(c) ENHANCEMENT OF EDUCATIONAL ASSISTANCE FOR
RESERVE COMPONENT MEMBERS SUPPORTING CONTIN-
GENCY OPERATIONS AND OTHER OPERATIONS.—
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(1) ASSISTANCE FOR THREE YEARS CUMULATIVE
SERVICE.—Subsection (c)(4)(C) of section 16162 of
title 10, United States Code, is amended by striking
‘‘for two continuous years or more.’’ and inserting
‘‘for—
‘‘(i) two continuous years or more; or
‘‘(ii) an aggregate of three years or more.’’.
(2) CONTRIBUTIONS FOR INCREASED AMOUNT OF
EDUCATIONAL ASSISTANCE.—Such section is further
amended by adding at the end the following new sub-
section:
‘‘(f) CONTRIBUTIONS
FOR INCREASED AMOUNT
OF
EDUCATIONAL ASSISTANCE.—(1)(A) Any individual eligi-
ble for educational assistance under this section may con-
tribute amounts for purposes of receiving an increased
amount of educational assistance as provided for in para-
graph (2).
‘‘(B) An individual covered by subparagraph (A) may
make the contributions authorized by that subparagraph at
any time while a member of a reserve component, but not
more frequently than monthly.
‘‘(C) The total amount of the contributions made by
an individual under subparagraph (A) may not exceed
$600. Such contributions shall be made in multiples of $20.
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‘‘(D) Contributions under this subsection shall be made
to the Secretary concerned. Such Secretary shall deposit
any amounts received as contributions under this subsection
into the Treasury as miscellaneous receipts.
‘‘(2) Effective as of the first day of the enrollment pe-
riod following the enrollment period in which an individual
makes contributions under paragraph (1), the monthly
amount of educational assistance allowance applicable to
such individual under this section shall be the monthly rate
otherwise provided for under subsection (c) increased by—
‘‘(A) an amount equal to $5 for each $20 con-
tributed by such individual under paragraph (1) for
an approved program of education pursued on a full-
time basis; or
‘‘(B) an appropriately reduced amount based on
the amount so contributed as determined under regu-
lations that the Secretary of Veterans Affairs shall
prescribe, for an approved program of education pur-
sued on less than a full-time basis.’’.
SEC. 675. EXTENSION OF PERIOD OF ENTITLEMENT TO
EDUCATIONAL 
ASSISTANCE 
FOR 
CERTAIN
MEMBERS OF THE SELECTED RESERVE AF-
FECTED BY FORCE SHAPING INITIATIVES.
Section 16133(b)(1)(B) of title 10, United States Code,
is amended by inserting ‘‘or the period beginning on Octo-
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ber 1, 2007, and ending on September 30, 2014,’’ after ‘‘De-
cember 31, 2001,’’.
SEC. 676. MODIFICATION OF TIME LIMIT FOR USE OF ENTI-
TLEMENT TO EDUCATIONAL ASSISTANCE FOR
RESERVE 
COMPONENT 
MEMBERS 
SUP-
PORTING CONTINGENCY OPERATIONS AND
OTHER OPERATIONS.
(a) MODIFICATION.—Section 16164(a) of title 10,
United States Code, is amended by striking ‘‘this chapter
while serving—’’ and all that follows and inserting ‘‘this
chapter—
‘‘(1) while the member is serving—
‘‘(A) in the Selected Reserve of the Ready
Reserve, in the case of a member called or or-
dered to active service while serving in the Se-
lected Reserve; or
‘‘(B) in the Ready Reserve, in the case of a
member ordered to active duty while serving in
the Ready Reserve (other than the Selected Re-
serve); and
‘‘(2) in the case of a person who separates from
the Selected Reserve of the Ready Reserve after com-
pletion of a period of active service described in sec-
tion 16163 of this title and completion of a service
contract under other than dishonorable conditions,
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during the 10-year period beginning on the date on
which the person separates from the Selected Re-
serve.’’.
(b) CONFORMING AMENDMENT.—Paragraph (2) of sec-
tion 16165(a) of such title is amended to read as follows:
‘‘(2) when the member separates from the Ready
Reserve as provided in section 16164(a)(1) of this
title, or upon completion of the period provided for in
section 16164(a)(2) of this title, as applicable.’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall take effect on October 28, 2004, as if included
in the enactment of the Ronald W. Reagan National Defense
Authorization Act for Fiscal Year 2005 (Public Law 108–
375), to which such amendments relate.
Subtitle F—Other Matters
SEC. 681. ENHANCEMENT OF AUTHORITIES ON INCOME RE-
PLACEMENT PAYMENTS FOR RESERVES EXPE-
RIENCING EXTENDED AND FREQUENT MOBI-
LIZATION FOR ACTIVE-DUTY SERVICE.
(a) CLARIFICATION OF GENERAL AUTHORITY.—Sub-
section (a) of section 910 of title 37, United States Code,
is amended by inserting ‘‘, when the total monthly military
compensation of the member is less than the average month-
ly civilian income’’ after ‘‘by the Secretary’’.
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(b) ELIGIBILITY.—Subsection (b) of such section is
amended to read as follows:
‘‘(b) ELIGIBILITY.—Subject to subsection (c), a reserve
component member is entitled to a payment under this sec-
tion for any full month of active duty of the member—
‘‘(1) while on active duty under an involuntary
mobilization order, following the date on which the
member—
‘‘(A) completes 18 continuous months of
service on active duty under such an order;
‘‘(B) completes 730 cumulative days of serv-
ice on active duty under such an order during
the previous 1,826 days; or
‘‘(C) is involuntarily mobilized for service
on active duty for a period of 180 days or more
within 180 days following the member’s separa-
tion from a previous period of involuntary active
duty for period of 180 days or more; or
‘‘(2) while retained on active duty under sub-
paragraph (A) or (B) of section 12301(h)(1) of title
10 because of an injury or illness incurred or aggra-
vated while deployed to an area designated for special
pay under section 310 of this title after becoming en-
titled to income replacement pay under paragraph
(1).’’.
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(c) TERMINATION.—Subsection (g) of such section is
amended to read as follows:
‘‘(g) TERMINATION OF AUTHORITY.—Payment under
this section shall only be made for service performed on or
before December 31, 2008.’’.
SEC. 682. OVERSEAS NATURALIZATION OF MILITARY FAM-
ILY MEMBERS.
(a) IN GENERAL.—Section 319 of the Immigration
and Nationality Act (8 U.S.C. 1430) is amended by adding
at the end the following new subsection:
‘‘(e) Any person who is lawfully admitted for perma-
nent residence, is the spouse or child of a member of the
Armed Forces, and is authorized to accompany such mem-
ber and reside in a foreign country with the member pursu-
ant to the member’s official orders, and who is so accom-
panying and residing with the member (in marital union
if a spouse), may be naturalized upon compliance with all
the requirements of this title except that the person’s resi-
dence and physical presence in such foreign country shall
be treated as residence and physical presence in the United
States or any State for the purpose of satisfying the require-
ments of section 316 or 322 for naturalization and for the
purpose 
of 
satisfying 
the 
requirements 
of 
section
101(a)(13)(C)(i) or (ii).’’.
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(b) OVERSEAS NATURALIZATION AUTHORITY.—Sec-
tion 1701(d) of the National Defense Authorization Act for
Fiscal Year 2004 (8 U.S.C. 1443a) is amended by inserting
‘‘, and persons eligible to meet the residence or physical
presence requirements for naturalization pursuant to sub-
section (e) of section 319 of the Immigration and Nation-
ality Act (8 U.S.C. 1430),’’ after ‘‘Armed Forces’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall take effect on the date of enactment of this Act
and apply to any application of naturalization pending be-
fore the Secretary of Homeland Security on or after the date
of enactment.
SEC. 683. NATIONAL GUARD YELLOW RIBBON REINTEGRA-
TION PROGRAM.
(a) ESTABLISHMENT.—The Secretary of Defense shall
establish a national combat veteran reintegration program
to provide National Guard and Reserve members and their
families with sufficient information, services, referral, and
proactive outreach opportunities throughout the entire de-
ployment cycle. This program shall be known as the Yellow
Ribbon Reintegration Program.
(b) PURPOSE.—The Yellow Ribbon Reintegration Pro-
gram shall consist of informational events and activities for
Reserve Component members, their families, and commu-
nity members to facilitate access to services supporting their
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health and well-being through the four phases of the deploy-
ment cycle:
(1) Pre-Deployment.
(2) Deployment.
(3) Demobilization.
(4) Post-Deployment-Reconstitution.
(c) ORGANIZATION.—
(1) EXECUTIVE AGENT.—The Secretary shall des-
ignate the OSD (P&R) as the Department of Defense
executive agent for the Yellow Ribbon Reintegration
Program.
(2) ESTABLISHMENT OF THE OFFICE FOR RE-
INTEGRATION PROGRAMS.—
(A) IN GENERAL.—The OSD (P&R) shall
establish the Office for Reintegration Programs
within the OSD. The office shall administer all
reintegration programs in coordination with
State National Guard organizations. The office
shall be responsible for coordination with exist-
ing National Guard and Reserve family and
support programs. The Directors of the Army
National Guard and Air National Guard and
the Chiefs of the Army Reserve, Marine Corps
Reserve, Navy Reserve and Air Force Reserve
may appoint liaison officers to coordinate with
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the permanent office staff. The Center may also
enter into partnerships with other public enti-
ties, including, but not limited to, the U.S. De-
partment of Health and Human Services, Sub-
stance Abuse and Mental Health Services Ad-
ministration, for access to necessary substance
abuse and mental health treatment services from
local State-licensed service providers.
(B) ESTABLISHMENT OF A CENTER FOR EX-
CELLENCE IN REINTEGRATION.—The Office for
Reintegration Programs shall establish a Center
for Excellence in Reintegration within the office.
The Center shall collect and analyze ‘‘lessons
learned’’ and suggestions from State National
Guard and Reserve organizations with existing
or developing reintegration programs. The Cen-
ter shall also assist in developing training aids
and briefing materials and training representa-
tives from State National Guard and Reserve or-
ganizations.
(3) ADVISORY BOARD.—
(A) APPOINTMENT.—The Secretary of De-
fense shall appoint an advisory board to analyze
and report areas of success and areas for nec-
essary improvements. The advisory board shall
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include, but is not limited to, the Director of the
Army National Guard, the Director of the Air
National Guard, Chiefs of the Army Reserve,
Marine Corps Reserve, Navy Reserve, and Air
Force Reserve, the Assistant Secretary of Defense
for Reserve Affairs, an Adjutant General on a
rotational basis as determined by the Chief of the
National Guard Bureau, and any other Depart-
ment of Defense, Federal Government agency, or
outside organization as determined by the Sec-
retary of Defense. The members of the advisory
board may designate representatives in their
stead.
(B) SCHEDULE.—The advisory board shall
meet on a schedule as determined by the Sec-
retary of Defense.
(C) INITIAL
REPORTING
REQUIREMENT.—
The advisory board shall issue internal reports
as necessary and shall submit an initial report
to the Committees on Armed Services not later
than 180 days after the end of a one-year period
from establishment of the Office for Reintegra-
tion Programs. This report shall contain—
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(i) an evaluation of the reintegration
program’s implementation by State Na-
tional Guard and Reserve organizations;
(ii) an assessment of any unmet re-
source requirements; and
(iii) recommendations regarding closer
coordination between the Office of Re-
integration Programs and State National
Guard and Reserve organizations.
(D) 
ANNUAL
REPORTS.—The 
advisory
board shall submit annual reports to the Com-
mittees on Armed Services of the Senate and the
House of Representatives following the initial re-
port by the first week in March of subsequent
years following the initial report.
(d) PROGRAM.—
(1) IN GENERAL.—The Office for Reintegration
Programs shall analyze the demographics, placement
of State Family Assistance Centers (FAC), and FAC
resources before a mobilization alert is issued to af-
fected State National Guard and Reserve organiza-
tions. The Office of Reintegration Programs shall con-
sult with affected State National Guard and Reserve
organizations following the issuance of a mobilization
alert and implement the reintegration events in ac-
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cordance with the Reintegration Program phase
model.
(2) PRE-DEPLOYMENT PHASE.—The Pre-Deploy-
ment Phase shall constitute the time from first notifi-
cation of mobilization until deployment of the mobi-
lized National Guard or Reserve unit. Events and ac-
tivities shall focus on providing education and ensur-
ing the readiness of service members, families, and
communities for the rigors of a combat deployment.
(3) 
DEPLOYMENT
PHASE.—The 
Deployment
Phase shall constitute the period from deployment of
the mobilized National Guard or Reserve unit until
the unit arrives at a demobilization station inside the
continental United States. Events and services pro-
vided shall focus on the challenges and stress associ-
ated with separation and having a member in a com-
bat zone. Information sessions shall utilize State Na-
tional Guard and Reserve resources in coordination
with the Employer Support of Guard and Reserve Of-
fice, Transition Assistance Advisors, and the State
Family Programs Director.
(4) DEMOBILIZATION PHASE.—
(A) 
IN
GENERAL.—The 
Demobilization
Phase shall constitute the period from arrival of
the National Guard or Reserve unit at the demo-
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bilization station until its departure for home
station. In the interest of returning members as
soon as possible to their home stations, reintegra-
tion briefings during the Demobilization Phase
shall be minimized. State Deployment Cycle
Support Teams are encouraged, however, to as-
sist demobilizing members in enrolling in the
Department of Veterans Affairs system using
Form 1010EZ during the Demobilization Phase.
State Deployment Cycle Support Teams may
provide other events from the Initial Reintegra-
tion Activity as determined by the State Na-
tional Guard or Reserve organizations. Remain-
ing events shall be conducted during the Post-De-
ployment-Reconstitution Phase.
(B) INITIAL
REINTEGRATION
ACTIVITY.—
The purpose of this reintegration program is to
educate service members about the resources that
are available to them and to connect members to
service providers who can assist them in over-
coming the challenges of reintegration.
(5) 
POST-DEPLOYMENT-RECONSTITUTION
PHASE.—
(A) IN
GENERAL.—The Post-Deployment-
Reconstitution Phase shall constitute the period
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from arrival at home station until 180 days fol-
lowing demobilization. Activities and services
provided shall focus on reconnecting service
members with their families and communities
and providing resources and information nec-
essary for successful reintegration. Reintegration
events shall begin with elements of the Initial
Reintegration Activity program that were not
completed during the Demobilization Phase.
(B) 30-DAY, 
60-DAY, 
AND
90-DAY
RE-
INTEGRATION
ACTIVITIES.—The State National
Guard and Reserve organizations shall hold re-
integration activities at the 30-day, 60-day, and
90-day interval following demobilization. These
activities shall focus on reconnecting service
members and family members with the service
providers from Initial Reintegration Activity to
ensure service members and their families under-
stand what benefits they are entitled to and what
resources are available to help them overcome the
challenges of reintegration. The Reintegration
Activities shall also provide a forum for service
members and families to address negative behav-
iors related to combat stress and transition.
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(C) SERVICE MEMBER PAY.—Service mem-
bers shall receive appropriate pay for days spent
attending the Reintegration Activities at the 30-
day, 60-day, and 90-day intervals.
(D) MONTHLY INDIVIDUAL REINTEGRATION
PROGRAM.—The Office for Reintegration Pro-
grams, in coordination with State National
Guard and Reserve organizations, shall offer a
monthly reintegration program for individual
service members released from active duty or for-
merly in a medical hold status. The program
shall focus on the special needs of this service
member subset and the Office for Reintegration
Programs shall develop an appropriate program
of services and information.
SEC. 684. FLEXIBILITY IN PAYING ANNUITIES TO CERTAIN
FEDERAL RETIREES WHO RETURN TO WORK.
(a) IN GENERAL.—Section 9902(j) of title 5, United
States Code, is amended to read as follows:
‘‘(j) PROVISIONS RELATING TO REEMPLOYMENT.—
‘‘(1) Except as provided under paragraph (2), if
an annuitant receiving an annuity from the Civil
Service Retirement and Disability Fund becomes em-
ployed in a position within the Department of De-
fense, his annuity shall continue. An annuitant so re-
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employed shall not be considered an employee for pur-
poses of chapter 83 or 84.
‘‘(2)(A) An annuitant receiving an annuity from
the Civil Service Retirement and Disability Fund
who becomes employed in a position within the De-
partment of Defense following retirement under sec-
tion 8336(d)(1) or 8414(b)(1)(A) shall be subject to
section 8344 or 8468.
‘‘(B) The Secretary of Defense may, under proce-
dures and criteria prescribed under subparagraph
(C), waive the application of the provisions of section
8344 or 8468 on a case-by-case or group basis, for
employment of an annuitant referred to in subpara-
graph (A) in a position in the Department of Defense.
‘‘(C) The Secretary shall prescribe procedures for
the exercise of any authority under this paragraph,
including criteria for any exercise of authority and
procedures for a delegation of authority.
‘‘(D) An employee as to whom a waiver under
this paragraph is in effect shall not be considered an
employee for purposes of subchapter III of chapter 83
or chapter 84.
‘‘(3)(A) An annuitant retired under section
8336(d)(1) or 8414(b)(1)(A) receiving an annuity
from the Civil Service Retirement and Disability
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Fund, who is employed in a position within the De-
partment of Defense after the date of enactment of the
National Defense Authorization Act for Fiscal Year
2004 (Public Law 108–136), may elect to begin cov-
erage under paragraph (2) of this subsection.
‘‘(B) An election for coverage under this para-
graph shall be filed not later than the later of 90 days
after the date the Department of Defense—
‘‘(i) prescribes regulations to carry out this
subsection; or
‘‘(ii) takes reasonable actions to notify em-
ployees who may file an election.
‘‘(C) If an employee files an election under this
paragraph, coverage shall be effective beginning on the
date of the filing of the election.
‘‘(D) Paragraph (1) shall apply to an individual
who is eligible to file an election under subparagraph
(A) of this paragraph and does not file a timely elec-
tion under subparagraph (B) of this paragraph.’’.
(b) REGULATIONS.—Not later than 60 days after the
date of enactment of this Act, the Secretary of Defense shall
prescribe regulations to carry out the amendment made by
this section.
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SEC. 685. PLAN FOR PARTICIPATION OF MEMBERS OF THE
NATIONAL GUARD AND THE RESERVES IN
THE BENEFITS DELIVERY AT DISCHARGE
PROGRAM.
(a) PLAN TO MAXIMIZE PARTICIPATION.—Not later
than 180 days after the date of the enactment of this Act,
the Secretary of Defense and the Secretary of Veterans Af-
fairs shall jointly submit to Congress a plan to maximize
access to the benefits delivery at discharge program for
members of the reserve components of the Armed Forces who
have been called or ordered to active duty at any time since
September 11, 2001.
(b) ELEMENTS.—The plan submitted under subsection
(a) shall include a description of efforts to ensure that serv-
ices under the benefits delivery at discharge program are
provided, to the maximum extent practicable—
(1) at appropriate military installations;
(2) at appropriate armories and military family
support centers of the National Guard;
(3) at appropriate military medical care facili-
ties at which members of the Armed Forces are sepa-
rated or discharged from the Armed Forces;
(4) in the case of a member on the temporary
disability retired list under section 1202 or 1205 of
title 10, United States Code, who is being retired
under another provision of such title or is being dis-
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charged, at a location reasonably convenient to the
member; and
(5) that services described in the plan can be
provided within resources available to the Secretary
of Defense and the Secretary of Veterans Affairs in
the appropriate fiscal year.
(c) BENEFITS DELIVERY AT DISCHARGE PROGRAM
DEFINED.—In this section, the term ‘‘benefits delivery at
discharge program’’ means a program administered jointly
by the Secretary of Defense and the Secretary of Veterans
Affairs to provide information and assistance on available
benefits and other transition assistance to members of the
Armed Forces who are separating from the Armed Forces,
including assistance to obtain any disability benefits for
which such members may be eligible.
SEC. 686. MODIFICATION OF AMOUNT OF BACK PAY FOR
MEMBERS OF NAVY AND MARINE CORPS SE-
LECTED FOR PROMOTION WHILE INTERNED
AS PRISONERS OF WAR DURING WORLD WAR
II TO TAKE INTO ACCOUNT CHANGES IN CON-
SUMER PRICE INDEX.
(a) MODIFICATION.—Section 667(c) of the Floyd D.
Spence National Defense Authorization Act for Fiscal Year
2001 (as enacted into law by Public Law 106–398; 114
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Stat. 1654A–170) is amended by adding at the end the fol-
lowing new paragraph:
‘‘(3) The amount determined for a person under para-
graph (1) shall be increased to reflect increases in cost of
living since the basic pay referred to in paragraph (1)(B)
was paid to or for that person, calculated on the basis of
the Consumer Price Index (all items—United States city
average) published monthly by the Bureau of Labor Statis-
tics.’’.
(b) RECALCULATION OF PREVIOUS PAYMENTS.—In the
case of any payment of back pay made to or for a person
under section 667 of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 before the date of
the enactment of this Act, the Secretary of the Navy shall—
(1) recalculate the amount of back pay to which
the person is entitled by reason of the amendment
made by subsection (a); and
(2) if the amount of back pay, as so recalculated,
exceeds the amount of back pay so paid, pay the per-
son, or the surviving spouse of the person, an amount
equal to the excess.
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TITLE VII—HEALTH CARE
PROVISIONS
SEC. 701. INCLUSION OF TRICARE RETAIL PHARMACY PRO-
GRAM IN FEDERAL PROCUREMENT OF PHAR-
MACEUTICALS.
(a) IN GENERAL.—Section 1074g of title 10, United
States Code, is amended—
(1) by redesignating subsections (f) and (g) as
subsections (g) and (h), respectively; and
(2) by inserting after subsection (e) the following
new subsection (f):
‘‘(f) 
PROCUREMENT
OF
PHARMACEUTICALS
BY
TRICARE RETAIL PHARMACY PROGRAM.—With respect to
any prescription filled on or after October 1, 2007, the
TRICARE retail pharmacy program shall be treated as an
element of the Department of Defense for purposes of the
procurement of drugs by Federal agencies under section
8126 of title 38 to the extent necessary to ensure that phar-
maceuticals paid for by the Department of Defense that are
provided by pharmacies under the program to eligible cov-
ered beneficiaries under this section are subject to the pric-
ing standards in such section 8126.’’.
(b) REGULATIONS.—The Secretary of Defense shall,
after consultation with the other administering Secretaries
under chapter 55 of title 10, United States Code, modify
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the regulations under subsection (h) of section 1074g of title
10, United States Code (as redesignated by subsection (a)(1)
of this section), to implement the requirements of subsection
(f) of section 1074g of title 10, United States Code (as
amended by subsection (a)(2) of this section). The Secretary
shall so modify such regulations not later than December
31, 2007.
SEC. 702. SURVEYS ON CONTINUED VIABILITY OF TRICARE
STANDARD AND TRICARE EXTRA.
(a) REQUIREMENT FOR SURVEYS.—
(1) IN GENERAL.—The Secretary of Defense shall
conduct surveys of health care providers and bene-
ficiaries who use TRICARE in the United States to
determine, utilizing a reconciliation of the responses
of providers and beneficiaries to such surveys, each of
the following:
(A) How many health care providers in
TRICARE Prime service areas selected under
paragraph (3)(A) are accepting new patients
under 
each 
of 
TRICARE 
Standard 
and
TRICARE Extra.
(B) How many health care providers in ge-
ographic areas in which TRICARE Prime is not
offered are accepting patients under each of
TRICARE Standard and TRICARE Extra.
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(C) The availability of mental health care
providers in TRICARE Prime service areas se-
lected under paragraph (3)(C) and in geographic
areas in which TRICARE Prime is not offered.
(2) BENCHMARKS.—The Secretary shall establish
for purposes of the surveys required by paragraph (1)
benchmarks for primary care and specialty care pro-
viders, including mental health care providers, to be
utilized to determine the adequacy of health care pro-
viders to beneficiaries eligible for TRICARE.
(3) SCOPE
OF
SURVEYS.—The Secretary shall
carry out the surveys required by paragraph (1) as
follows:
(A) In the case of the surveys required by
subparagraph (A) of that paragraph, in at least
20 TRICARE Prime service areas in the United
States in each of fiscal years 2008 through 2011.
(B) In the case of the surveys required by
subparagraph (B) of that paragraph, in 20 geo-
graphic areas in which TRICARE Prime is not
offered and in which significant numbers of
beneficiaries who are members of the Selected Re-
serve reside.
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(C) In the case of the surveys required by
subparagraph (C) of that paragraph, in at least
40 geographic areas.
(4) PRIORITY FOR SURVEYS.—In prioritizing the
areas which are to be surveyed under paragraph (1),
the Secretary shall—
(A) 
consult 
with 
representatives 
of
TRICARE beneficiaries and health care and
mental health care providers to identify locations
where TRICARE Standard beneficiaries are ex-
periencing significant levels of access-to-care
problems 
under 
TRICARE 
Standard 
or
TRICARE Extra; and
(B) give a high priority to surveying health
care and mental health care providers in such
areas.
(5) INFORMATION FROM PROVIDERS.—The sur-
veys required by paragraph (1) shall include ques-
tions seeking to determine from health care and men-
tal health care providers the following:
(A) Whether the provider is aware of the
TRICARE program.
(B) What percentage of the provider’s cur-
rent patient population uses any form of
TRICARE.
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(C) Whether the provider accepts patients
for whom payment is made under the medicare
program for health care and mental health care
services.
(D) If the provider accepts patients referred
to in subparagraph (C), whether the provider
would accept additional such patients who are
not in the provider’s current patient population.
(6) INFORMATION
FROM
BENEFICIARIES.—The
surveys required by paragraph (1) shall include ques-
tions 
seeking 
information 
to 
determine 
from
TRICARE beneficiaries whether they have difficulties
in finding health care and mental health care pro-
viders willing to provide services under TRICARE
Standard or TRICARE Extra.
(b) SUPERVISION.—
(1) SUPERVISING OFFICIAL.—The Secretary shall
designate a senior official of the Department of De-
fense to take the actions necessary for achieving and
maintaining participation of health care and mental
health care providers in TRICARE Standard and
TRICARE Extra throughout TRICARE in a number
that is adequate to ensure the viability of TRICARE
Standard for TRICARE beneficiaries.
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(2) DUTIES.—The official designated under
paragraph (1) shall have the following duties:
(A) To make recommendations to the Sec-
retary for purposes of subsection (a)(2) on ap-
propriate benchmarks for measuring the ade-
quacy of health care and mental health care pro-
viders in TRICARE Prime service areas and ge-
ographic areas in the United States in which
TRICARE Prime is not offered.
(B) To educate health care and mental
health care providers about TRICARE Standard
and TRICARE Extra.
(C) To encourage health care and mental
health care providers to accept patients under
TRICARE Standard and TRICARE Extra.
(D) To ensure that TRICARE beneficiaries
have 
the 
information 
necessary 
to 
locate
TRICARE Standard and TRICARE Extra pro-
viders readily.
(E) 
To 
recommend 
adjustments 
in
TRICARE Standard provider payment rates
that the official considers necessary to ensure
adequate availability of TRICARE Standard
providers for TRICARE Standard beneficiaries.
(c) GAO REVIEW.—