‘‘(c) PROVISION
OF CREDIT PROTECTION SERV-
ICES.—Any amount collected by the Secretary under sub-
section (b) shall be deposited in or credited to the Depart-
ment account from which the contractor was paid and 
shall remain available for obligation without fiscal year 
limitation exclusively for the purpose of providing credit 
protection services in accordance with section 5726 of this 
title. 
‘‘§ 5728. Authorization of appropriations 
‘‘There are authorized to be appropriated to carry out 
this subchapter such sums as may be necessary for each 
fiscal year.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new items: 
‘‘SUBCHAPTER III—INFORMATION SECURITY 
‘‘5721. Definitions. 
‘‘5722. Office of the Under Secretary for Information Services. 
‘‘5723. Information security management. 
‘‘5724. Congressional reporting and notification of data breaches. 
‘‘5725. Data breaches. 
‘‘5726. Provision of credit protection services. 
‘‘5727. Contracts for data processing or maintenance. 
‘‘5728. Authorization of appropriations.’’. 
(c) DEADLINE FOR REGULATIONS.—Not later than 
60 days after the date of the enactment of this Act, the 
Secretary of Veterans Affairs shall publish regulations to 
carry out subchapter III of chapter 57 of title 38, United 
States Code, as added by subsection (a). 
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SEC. 5. REPORT ON FEASIBILITY OF USING PERSONAL 
IDENTIFICATION NUMBERS FOR IDENTIFICA-
TION. 
Not later than 180 days after the date of the enact-
ment of this Act, the Secretary of Veterans Affairs shall 
submit to Congress a report containing the assessment of 
the Secretary with respect to the feasibility of using per-
sonal identification numbers instead of Social Security 
numbers for the purpose of identifying individuals whose 
sensitive personal information (as that term is defined in 
section 5721 of title 38, United States Code, as added by 
section 4) is processed or maintained by the Secretary. 
SEC. 6. DEADLINE FOR APPOINTMENTS. 
(a) DEADLINE.—Not later than 180 days after the 
date of the enactment of this Act— 
(1) the President shall nominate an individual 
to serve as the Under Secretary of Veterans Affairs 
for Information Services under section 307A of title 
38, United States Code, as added by section 3; and 
(2) the Secretary of Veterans Affairs shall ap-
point an individual to serve as each of the Deputy 
Under Secretaries of Veterans Affairs for Informa-
tion Services under section 5722 of such title, as 
added by section 4. 
(b) REPORT.—Not later than 30 days after the date 
of the enactment of this Act, and every 30 days thereafter 
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until the appointments described in subsection (a) are 
made, the Secretary of Veterans Affairs shall submit to 
Congress a report describing the progress of such appoint-
ments. 
SEC. 7. INFORMATION SECURITY EDUCATION ASSISTANCE 
PROGRAM. 
(a) PROGRAM REQUIRED.—Title 38, United States 
Code, is amended by inserting after chapter 78 the fol-
lowing new chapter: 
‘‘CHAPTER 79—INFORMATION SECURITY 
EDUCATION ASSISTANCE PROGRAM 
‘‘Sec. 
‘‘7901. Programs; purpose. 
‘‘7902. Scholarship program. 
‘‘7903. Education debt reduction program. 
‘‘7904. Preferences in awarding financial assistance. 
‘‘7905. Requirement of honorable discharge for veterans receiving assistance. 
‘‘7906. Regulations. 
‘‘7907. Termination. 
‘‘§ 7901. Programs; purpose 
‘‘(a) IN GENERAL.—To encourage the recruitment 
and retention of Department personnel who have the in-
formation security skills necessary to meet Department re-
quirements, the Secretary shall carry out programs in ac-
cordance with this chapter to provide financial support for 
education in information security at institutions of higher 
education. 
‘‘(b) TYPES OF PROGRAMS.—The programs author-
ized under this chapter are as follows: 
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‘‘(1) Scholarships for pursuit of doctoral de-
grees in information security at institutions of high-
er education. 
‘‘(2) Education debt reduction for Department 
personnel who hold doctoral degrees in information 
security. 
‘‘§ 7902. Scholarship program 
‘‘(a) AUTHORITY.—(1) The Secretary shall, subject 
to subsection (d), provide financial assistance in accord-
ance with this section to a qualified person— 
‘‘(A) who is pursuing a doctoral degree in infor-
mation security at an institution of higher education; 
and 
‘‘(B) who enters into an agreement with the 
Secretary as described in subsection (b). 
‘‘(2) The Secretary may provide financial assistance 
under this section to an individual for up to five years. 
‘‘(3) The Secretary may award up to three scholar-
ships for any academic year to individuals who did not 
receive assistance under this section for the preceding aca-
demic year. 
‘‘(b) SERVICE AGREEMENT FOR SCHOLARSHIP RE-
CIPIENTS.—(1) To receive financial assistance under this 
section an individual shall enter into an agreement to ac-
cept and continue employment in the Department for the 
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period of obligated service determined under paragraph 
(2). 
‘‘(2) For the purposes of this subsection, the period 
of obligated service for a recipient of financial assistance 
under this section shall be the period determined by the 
Secretary as being appropriate to obtain adequate service 
in exchange for the financial assistance and otherwise to 
achieve the goals set forth in section 7901(a) of this title. 
In no event may the period of service required of a recipi-
ent be less than the period equal to two times the total 
period of pursuit of a degree for which the Secretary 
agrees to provide the recipient with financial assistance 
under this section. The period of obligated service is in 
addition to any other period for which the recipient is obli-
gated to serve on active duty or in the civil service, as 
the case may be. 
‘‘(3) An agreement entered into under this section by 
a person pursuing an doctoral degree shall include terms 
that provide the following: 
‘‘(A) That the period of obligated service begins 
on a date after the award of the degree that is de-
termined under the regulations prescribed under sec-
tion 7906 of this title. 
‘‘(B) That the individual will maintain satisfac-
tory academic progress, as determined in accordance 
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with those regulations, and that failure to maintain 
such progress constitutes grounds for termination of 
the financial assistance for the individual under this 
section. 
‘‘(C) Any other terms and conditions that the 
Secretary determines appropriate for carrying out 
this section. 
‘‘(c) AMOUNT OF ASSISTANCE.—(1) The amount of 
the financial assistance provided for an individual under 
this section shall be the amount determined by the Sec-
retary as being necessary to pay— 
‘‘(A) the tuition and fees of the individual; and 
‘‘(B) $1500 to the individual each month (in-
cluding a month between academic semesters or 
terms leading to the degree for which such assist-
ance is provided or during which the individual is 
not enrolled in a course of education but is pursuing 
independent research leading to such degree) for 
books, laboratory expenses, and expenses of room 
and board. 
‘‘(2) In no case may the amount of assistance pro-
vided for an individual under this section for an academic 
year exceed $50,000. 
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‘‘(3) In no case may the total amount of assistance 
provided for an individual under this section exceed 
$200,000. 
‘‘(d) REPAYMENT FOR PERIOD OF UNSERVED OBLI-
GATED SERVICE.—(1) An individual who receives financial 
assistance under this section shall repay to the Secretary 
an amount equal to the unearned portion of the financial 
assistance if the individual fails to satisfy the require-
ments of the service agreement entered into under sub-
section (b), except in certain circumstances authorized by 
the Secretary. 
‘‘(2) The Secretary may establish, by regulations, 
procedures for determining the amount of the repayment 
required under this subsection and the circumstances 
under which an exception to the required repayment may 
be granted. 
‘‘(3) An obligation to repay the Secretary under this 
subsection is, for all purposes, a debt owed the United 
States. A discharge in bankruptcy under title 11 does not 
discharge a person from such debt if the discharge order 
is entered less than five years after the date of the termi-
nation of the agreement or contract on which the debt is 
based. 
‘‘(e) INTERNSHIPS.—(1) The Secretary may offer a 
compensated internship to an individual for whom finan-
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cial assistance is provided under this section during a pe-
riod between academic semesters or terms leading to the 
degree for which such assistance is provided. Compensa-
tion provided for such an internship shall be in addition 
to the financial assistance provided under this section. 
‘‘(2) An internship under this subsection shall not be 
counted toward satisfying a period of obligated service 
under this section. 
‘‘(f) INELIGIBILITY
OF
INDIVIDUALS
RECEIVING 
MONTGOMERY GI BILL EDUCATION ASSISTANCE PAY-
MENTS.—An individual who receives a payment of edu-
cational assistance under chapter 30, 31, 32, or 34 of this 
title or chapter 1606 or 1607 of title 10 for a month in 
which the individual is enrolled in a course of education 
leading to a doctoral degree in information security is not 
eligible to receive financial assistance under this section 
for that month. 
‘‘§ 7903. Education debt reduction program 
‘‘(a) AUTHORITY.—(1) The Secretary shall make 
education debt reduction payments under this section to 
qualified individuals eligible under subsection (b) for the 
purpose of reimbursing such individuals for payments by 
such individuals of principal and interest on loans de-
scribed in paragraph (2) of that subsection. 
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‘‘(2) For each fiscal year, the Secretary may make 
payments under paragraph (1) to up to three individuals 
who did not receive such a payment during the preceding 
fiscal year. 
‘‘(b) ELIGIBILITY.—An individual is eligible to re-
ceive education debt reduction payments under this sec-
tion if the individual— 
‘‘(1) has completed a doctoral degree in infor-
mation security during the five-year period preceding 
the date on which the individual is hired by the Sec-
retary to serve in a position in the Department re-
lated to information security (as determined by the 
Secretary); 
‘‘(2) is an employee of the Department who has 
served in a position related to information security 
(as determined by the Secretary) for less than six 
months; and 
‘‘(3) owes any amount of principal or interest 
under a loan, the proceeds of which were used by or 
on behalf of that individual to pay costs relating to 
a doctoral degree in information security. 
‘‘(c) AMOUNT OF ASSISTANCE.—(1) Subject to para-
graph (2), the amount of education debt reduction pay-
ments made to an individual under this section may not 
exceed $82,500 over a total of five years, of which not 
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more than $16,500 of such payments may be made in each 
year. 
‘‘(2) The total amount payable to an individual under 
this section for any year may not exceed the amount of 
the principal and interest on loans referred to in sub-
section (b)(3) that is paid by the individual during such 
year. 
‘‘(d) PAYMENTS.—(1) The Secretary shall make an 
education debt reduction payments under this section on 
an annual basis. 
‘‘(2) The Secretary shall make such a payment— 
‘‘(A) on the last day of the one-year period be-
ginning on the date on which the individual began 
employment at the Department; or 
‘‘(B) in the case of an individual who has re-
ceived a payment under this section, on the last day 
of the one-year period beginning on the date on 
which the individual last received such a payment. 
‘‘(e) PERFORMANCE REQUIREMENT.—The Secretary 
may make education debt reduction payments to an indi-
vidual under this section for a year only if the Secretary 
determines that the individual maintained an acceptable 
level of performance in the position or positions served by 
the individual during the year. 
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‘‘(f) NOTIFICATION
OF TERMS
OF PROVISION
OF 
PAYMENTS.—The Secretary shall provide to an individual 
who receives a payment under this section notice in writ-
ing of the terms and conditions that apply to such a pay-
ment. 
‘‘(g) COVERED COSTS.—For purposes of subsection 
(b)(3), costs relating to a course of education or training 
include— 
‘‘(1) ) tuition expenses; and 
‘‘(2) all other reasonable educational expenses, 
including fees, books, and laboratory expenses. 
‘‘§ 7904. Preferences in awarding financial assistance 
‘‘In awarding financial assistance under this chapter, 
the Secretary shall give a preference to individuals who 
are otherwise eligible to receive the financial assistance in 
the following order of priority: 
‘‘(1) Veterans with service-connected disabil-
ities. 
‘‘(2) Veterans. 
‘‘(3) Individuals who received or are pursuing 
degrees at institutions designated by the National 
Security Agency as Centers of Academic Excellence 
in Information Assurance Education. 
‘‘(4) Citizens of the United States. 
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‘‘§ 7905. Requirement of honorable discharge for vet-
erans receiving assistance 
‘‘No veteran shall receive financial assistance under 
this chapter unless the veteran was discharged from the 
Armed Forces under honorable conditions. 
‘‘§ 7906. Regulations 
‘‘The Secretary shall prescribe regulations for the ad-
ministration of this chapter. 
‘‘§ 7907. Termination 
‘‘The authority of the Secretary to make a payment 
under this chapter shall terminate on July 31, 2017.’’. 
(b) GAO REPORT.—Not later than three years after 
the date of the enactment of this Act, the Comptroller 
General shall submit to Congress a report on the scholar-
ship and education debt reduction programs under chapter 
79 of title 38, United States Code, as added by subsection 
(a). 
(c) ELIGIBILITY OF DEPARTMENT OF VETERANS AF-
FAIRS EMPLOYEES.—An individual who is an employee of 
the Department of Veterans Affairs as of the date of the 
enactment of this Act is not eligible for a scholarship 
under section 7902 of title 38, United States Code, as 
added by subsection (a). 
(d) APPLICABILITY.— 
(1) SCHOLARSHIPS.—Section 7902 of title 38, 
United States Code, as added by subsection (a), 
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shall apply with respect to financial assistance pro-
vided for an academic semester or term that begins 
on or after August 1, 2007. 
(2) EDUCATION
DEBT
REDUCTION.—Section 
7902 of such title, as added by subsection (a), shall 
apply with respect to an individual hired on or after 
the date that is six months before the date of the 
enactment of this Act. 
(e) CLERICAL AMENDMENT.—The tables of chapters 
at the beginning of such title, and at the beginning of part 
V of such title, are amended by inserting after the item 
relating to chapter 78 the following new item: 
‘‘79. Information Security Education Assistance Program ...................... 7901’’. 
Æ 
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