‘‘(d) APPLICATION FOR FINANCIAL ASSISTANCE.— 
(1) An eligible entity seeking financial assistance under 
subsection (b) shall submit to the Secretary an application 
therefor in such form, in such manner, and containing 
such commitments and information as the Secretary deter-
mines to be necessary to carry out this section. 
‘‘(2) Each application submitted by an eligible entity 
under paragraph (1) shall contain— 
‘‘(A) a description of the mental health sup-
portive services described in subsection (c) proposed 
to be provided by the eligible entity under this sec-
tion and the identified needs for those services; 
‘‘(B) a description of the demographic informa-
tion of the veterans proposed to be provided such 
services; 
‘‘(C) an estimate of the number of veterans 
with a mental health condition proposed to be pro-
vided such services; 
‘‘(D) evidence of the experience of the eligible 
entity in providing mental health supportive services 
to veterans with a mental health condition; and 
‘‘(E) a description of the managerial capacity of 
the eligible entity— 
‘‘(i) to coordinate the provision of mental 
health supportive services with the provision of 
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mental health services by the eligible entity or 
another organization; 
‘‘(ii) to assess continually the needs of vet-
erans with a mental health condition for mental 
health supportive services; 
‘‘(iii) to coordinate the provision of mental 
health supportive services with the services of 
the Department; and 
‘‘(iv) to tailor supportive mental health 
services to the needs of veterans with a mental 
health condition. 
‘‘(3)(A) The Secretary shall establish criteria for the 
selection of eligible entities to be provided financial assist-
ance under this section. 
‘‘(B) Criteria established under subparagraph (A) 
with respect to an eligible entity shall include the fol-
lowing: 
‘‘(i) Relevant accreditation as may be required 
by each State in which the eligible entity operates. 
‘‘(ii) Experience coordinating care or providing 
treatment for veterans or members of the Armed 
Forces. 
‘‘(e) TECHNICAL ASSISTANCE.—(1) The Secretary 
shall provide training and technical assistance to eligible 
entities provided financial assistance under this section re-
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garding the planning, development, and provision of men-
tal health supportive services under this section. 
‘‘(2) The Secretary may provide the training de-
scribed in paragraph (1) directly or through grants or con-
tracts with appropriate public or nonprofit private entities, 
including through grants awarded under section 2064 of 
this title. 
‘‘(f) COLLECTION OF INFORMATION.—To the extent 
practicable, the Secretary may collect information from an 
eligibility entity awarded a grant under this section relat-
ing to a mental health condition of a veteran for inclusion 
in the electronic health record of the Department for such 
veteran for the sole purpose of improving care provided 
to such veteran. 
‘‘(g) FUNDING.—From amounts appropriated to the 
Department for medical services, there shall be available 
to carry out subsections (b), (c), and (d) the following: 
‘‘(1) $5,000,000 for fiscal year 2022. 
‘‘(2) $10,000,000 for fiscal year 2023. 
‘‘(3) $15,000,000 for fiscal year 2024. 
‘‘(h) DEFINITIONS.—In this section: 
‘‘(1) The term ‘eligible entity’ means any of the 
following: 
‘‘(A) An incorporated private institution or 
foundation— 
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‘‘(i) no part of the net earnings of 
which inures to the benefit of any member, 
founder, contributor, or individual; 
‘‘(ii) that has a governing board that 
is responsible for the operation of the men-
tal health supportive services provided 
under this section; and 
‘‘(iii) that is approved by the Sec-
retary with respect to financial responsi-
bility. 
‘‘(B) A for-profit limited partnership, the 
sole general partner of which is an organization 
meeting the requirements of clauses (i), (ii), 
and (iii) of subparagraph (A). 
‘‘(C) A corporation wholly owned and con-
trolled by an organization meeting the require-
ments of clauses (i), (ii), and (iii) of subpara-
graph (A). 
‘‘(D) A tribally designated housing entity 
(as defined in section 4 of the Native American 
Housing Assistance and Self-Determination Act 
of 1996 (25 U.S.C. 4103)). 
‘‘(2) The term ‘veteran with a mental health 
condition’ means a veteran who has been diagnosed 
with, or who is seeking treatment for, one or more 
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mental health conditions, as determined by the Sec-
retary.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 17 is amended by 
inserting after the item relating to section 1720I the 
following new item: 
‘‘1720J. Financial assistance for mental health supportive services for veterans 
seeking mental health treatment.’’. 
(b) STUDY ON EFFECTIVENESS OF PROGRAM.— 
(1) IN GENERAL.—The Secretary of Veterans 
Affairs shall conduct a study on the effectiveness of 
the program of financial assistance under section 
1720J of title 38, United States Code, as added by 
subsection (a), in meeting the needs of veterans with 
a mental health condition, as that term is defined in 
that section. 
(2) COMPARISON.—In conducting the study re-
quired by paragraph (1), the Secretary shall com-
pare the results of the program described in that 
paragraph with other programs of the Department 
of Veterans Affairs dedicated to the delivery of men-
tal health services to veterans. 
(3) CRITERIA.—In making the comparison re-
quired by paragraph (2), the Secretary shall examine 
the following: 
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(A) The satisfaction of veterans targeted 
by the programs described in paragraph (2). 
(B) The health status of such veterans. 
(C) The mental wellness of such veterans. 
(D) The degree to which such veterans are 
encouraged to engage in productive activity by 
such programs. 
(E) The number of veterans using such 
programs, disaggregated by— 
(i) veterans who have received care 
from the Department in the previous two 
years; and 
(ii) veterans who have not received 
care from the Department in the previous 
two years. 
(F) The number of women’s clinics that 
have peer support specialists who are women, 
including— 
(i) the location of such clinics; 
(ii) the availability of peer support 
specialist services at such clinics; 
(iii) the average number of veterans 
treated by such specialists; and 
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(iv) the average duration of the rela-
tionship between a veteran and such spe-
cialists. 
(G) The number of veterans who die by 
suicide while receiving services from an entity 
in receipt of a grant under the program of fi-
nancial assistance under section 1720J of title 
38, United States Code, as added by subsection 
(a), or who die by suicide during the 180-day 
period after receiving such services. 
(4) REPORT.—Not later than December 31, 
2021, and annually thereafter, the Secretary shall 
submit to the Committee on Veterans’ Affairs of the 
Senate and the Committee on Veterans’ Affairs of 
the House of Representatives a report on the results 
of the study required by paragraph (1). 
(c) EFFECTIVE DATE.—The Secretary shall begin 
providing financial assistance under section 1720J of title 
38, United States Code, as added by subsection (a), not 
later than one year after the date of the enactment of this 
Act. 
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SEC. 6. ESTABLISHMENT OF DEPARTMENT OF VETERANS 
AFFAIRS 
READJUSTMENT 
COUNSELING 
SERVICE SCHOLARSHIP PROGRAM. 
(a) IN GENERAL.—Chapter 76 of title 38, United 
States Code, is amended by inserting after subchapter 
VIII the following new subchapter: 
‘‘SUBCHAPTER IX—READJUSTMENT 
COUNSELING SERVICE SCHOLARSHIP PROGRAM 
‘‘§ 7698. Requirement for program 
‘‘As part of the Educational Assistance Program, the 
Secretary shall carry out a scholarship program under this 
subchapter. The program shall be known as the Depart-
ment of Veterans Affairs Readjustment Counseling Serv-
ice Scholarship Program (in this subchapter referred to 
as the ‘Program’). 
‘‘§ 7699. Eligibility; agreement 
‘‘(a) IN GENERAL.—An individual is eligible to par-
ticipate in the Program, as determined by the Readjust-
ment Counseling Service of the Department, if the indi-
vidual— 
‘‘(1) is accepted for enrollment or enrolled (as 
described in section 7602 of this title) in, a program 
of study at an accredited educational institution, 
school, or training program leading to— 
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‘‘(A) a bachelor’s, master’s, or doctoral de-
gree in psychology, social work, or marriage 
and family therapy; or 
‘‘(B) a master’s degree in mental health 
counseling; and 
‘‘(2) enters into an agreement with the Sec-
retary under subsection (c). 
‘‘(b) PRIORITY.—In selecting individuals to partici-
pate in the Program, the Secretary shall give priority to 
the following individuals: 
‘‘(1) An individual who agrees to be employed 
by a Vet Center located in a community that is— 
‘‘(A) designated as a medically underserved 
population under section 330(b)(3) of the Pub-
lic Health Service Act (42 U.S.C. 254b(b)(3)); 
and 
‘‘(B) in a state with a per capita popu-
lation of veterans of more than five percent ac-
cording to the National Center for Veterans 
Analysis and Statistics and the Bureau of the 
Census. 
‘‘(2) An individual who is a veteran. 
‘‘(c) AGREEMENT.—An agreement between the Sec-
retary and a participant in the Program shall (in addition 
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to the requirements set forth in section 7604 of this title) 
include the following: 
‘‘(1) An agreement by the Secretary to provide 
the participant with a scholarship under the Pro-
gram for a specified number of school years during 
which the participant pursues a program of study 
described in subsection (a)(1) that meets the re-
quirements set forth in section 7602(a) of this title. 
‘‘(2) An agreement by the participant to serve 
as a full-time employee of the Department at a Vet 
Center for a three-year period during the six-year 
period following the completion by the participant of 
such program of study (in this subchapter referred 
to as the ‘period of obligated service’). 
‘‘(d) VET CENTER DEFINED.—In this section, the 
term ‘Vet Center’ has the meaning given that term in sec-
tion 1712A(h) of this title. 
‘‘§ 7699A. Obligated service 
‘‘(a) IN GENERAL.—Each participant in the Program 
shall provide service as a full-time employee of the Depart-
ment at a Vet Center (as defined in section 7699(c) of 
this title) for the period of obligated service set forth in 
the agreement of the participant entered into under sec-
tion 7604 of this title. 
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‘‘(b) DETERMINATION OF SERVICE COMMENCEMENT 
DATE.—(1) Not later than 60 days before the service com-
mencement date of a participant, the Secretary shall no-
tify the participant of that service commencement date. 
‘‘(2) The date specified in paragraph (1) with respect 
to a participant is the date for the beginning of the period 
of obligated service of the participant. 
‘‘§ 7699B. Breach of agreement: liability 
‘‘(a) LIQUIDATED DAMAGES.—(1) A participant in 
the Program (other than a participant described in sub-
section (b)) who fails to accept payment, or instructs the 
educational institution in which the participant is enrolled 
not to accept payment, in whole or in part, of a scholarship 
under the agreement entered into under section 7604 of 
this title shall be liable to the United States for liquidated 
damages in the amount of $1,500. 
‘‘(2) Liability under paragraph (1) is in addition to 
any period of obligated service or other obligation or liabil-
ity under such agreement. 
‘‘(b) LIABILITY DURING PROGRAM OF STUDY.—(1) 
Except as provided in subsection (d), a participant in the 
Program shall be liable to the United States for the 
amount which has been paid to or on behalf of the partici-
pant under the agreement if any of the following occurs: 
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‘‘(A) The participant fails to maintain an ac-
ceptable level of academic standing in the edu-
cational institution in which the participant is en-
rolled (as determined by the educational institution 
under regulations prescribed by the Secretary). 
‘‘(B) The participant is dismissed from such 
educational institution for disciplinary reasons. 
‘‘(C) The participant voluntarily terminates the 
program of study in such educational institution be-
fore the completion of such program of study. 
‘‘(2) Liability under this subsection is in lieu of any 
service obligation arising under the agreement. 
‘‘(c) LIABILITY DURING PERIOD
OF OBLIGATED 
SERVICE.—(1) Except as provided in subsection (d), if a 
participant in the Program does not complete the period 
of obligated service of the participant, the United States 
shall be entitled to recover from the participant an amount 
determined in accordance with the following formula: A 
= 3Φ(t¥s/t). 
‘‘(2) In the formula in paragraph (1): 
‘‘(A) ‘A’ is the amount the United States is en-
titled to recover. 
‘‘(B) ‘Φ’ is the sum of— 
‘‘(i) the amounts paid under this sub-
chapter to or on behalf of the participant; and 
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‘‘(ii) the interest on such amounts which 
would be payable if at the time the amounts 
were paid they were loans bearing interest at 
the maximum legal prevailing rate, as deter-
mined by the Treasurer of the United States. 
‘‘(C) ‘t’ is the total number of months in the 
period of obligated service of the participant. 
‘‘(D) ‘s’ is the number of months of such period 
served by the participant. 
‘‘(d) LIMITATION ON LIABILITY FOR REDUCTIONS- 
IN-FORCE.—Liability shall not arise under subsection (c) 
if the participant fails to maintain employment as a De-
partment employee due to a staffing adjustment. 
‘‘(e) PERIOD
FOR PAYMENT
OF DAMAGES.—Any 
amount of damages that the United States is entitled to 
recover under this section shall be paid to the United 
States within the one-year period beginning on the date 
of the breach of the agreement.’’. 
(b) CONFORMING AND TECHNICAL AMENDMENTS.— 
(1) CONFORMING AMENDMENTS.— 
(A) ESTABLISHMENT OF PROGRAM.—Sec-
tion 7601(a) of such title is amended— 
(i) in paragraph (5), by striking 
‘‘and’’; 
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(ii) in paragraph (6), by striking the 
period and inserting ‘‘; and’’; and 
(iii) by adding at the end the fol-
lowing new paragraph: 
‘‘(7) the readjustment counseling service schol-
arship program provided for in subchapter IX of this 
chapter.’’. 
(B) ELIGIBILITY.—Section 7602 of such 
title is amended— 
(i) in subsection (a)(1)— 
(I) by striking ‘‘or VI’’ and in-
serting ‘‘VI, or IX’’; and 
(II) by striking ‘‘subchapter VI’’ 
and inserting ‘‘subchapter VI or IX’’; 
and 
(ii) in subsection (b), by striking ‘‘or 
VI’’ and inserting ‘‘VI, or IX’’. 
(C) APPLICATION.—Section 7603(a)(1) of 
such title is amended by striking ‘‘or VIII’’ and 
inserting ‘‘VIII, or IX’’. 
(D) 
TERMS
OF
AGREEMENT.—Section 
7604 of such title is amended by striking ‘‘or 
VIII’’ each place it appears and inserting 
‘‘VIII, or IX’’. 
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(E) ANNUAL
REPORT.—Section 7632 of 
such title is amended— 
(i) in paragraph (1), by striking ‘‘and 
the Specialty Education Loan Repayment 
Program’’ and inserting ‘‘the Specialty 
Education Loan Repayment Program, and 
the 
Readjustment 
Counseling 
Service 
Scholarship Program’’; and 
(ii) in paragraph (4), by striking ‘‘and 
per participant in the Specialty Education 
Loan Repayment Program’’ and inserting 
‘‘per participant in the Specialty Education 
Loan Repayment Program, and per partic-
ipant in the Readjustment Counseling 
Service Scholarship Program’’. 
(2) TABLE OF SECTIONS.—The table of sections 
at the beginning of chapter 76 of such title is 
amended by inserting after the items relating to sub-
chapter VIII the following: 
‘‘SUBCHAPTER IX—READJUSTMENT COUNSELING SERVICE SCHOLARSHIP 
PROGRAM 
‘‘Sec. 
‘‘7698. Requirement for program. 
‘‘7699. Eligibility; agreement. 
‘‘7699A. Obligated service. 
‘‘7699B. Breach of agreement: liability.’’. 
(c) EFFECTIVE DATE.—The Secretary of Veterans 
Affairs shall begin awarding scholarships under sub-
chapter IX of chapter 76 of title 38, United States Code, 
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as added by subsection (a), for programs of study begin-
ning not later than one year after the date of the enact-
ment of this Act. 
Æ 
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