SECTION 1. SHORT TITLE; TABLE OF CONTENTS; REF-
ERENCES TO TITLE 38, UNITED STATES CODE.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Veterans and Dependents Millennium Education Act’’.
(b) TABLE OF CONTENTS.—The table of contents of
this Act is as follows:
Sec. 1. Short title; table of contents; references to title 38, United States Code.
Sec. 2. Increase in rates of basic educational assistance under Montgomery GI
Bill.
Sec. 3. Additional opportunity for certain VEAP participants to enroll in basic
educational assistance under Montgomery GI Bill.
Sec. 4. Increase in rates of survivors and dependents educational assistance.
Sec. 5. Adjusted effective date for award of survivors’ and dependents’ edu-
cational assistance.
Sec. 6. Revision of educational assistance interval payment requirements.
Sec. 7. Availability of Montgomery GI Bill benefits for payment for licensing
or certification tests.
Sec. 8. Extension of certain temporary authorities.
Sec. 9. Codification of recurring provisions in annual Department of Veterans
Affairs appropriations Acts.
Sec. 10. Termination of certain reporting requirements.
(c) REFERENCES
TO TITLE 38, UNITED STATES
CODE.—Except as otherwise expressly provided, whenever
in this Act an amendment or repeal is expressed in terms
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a
section or other provision of title 38, United States Code.
SEC. 2. INCREASE IN RATES OF BASIC EDUCATIONAL AS-
SISTANCE UNDER MONTGOMERY GI BILL.
(a) ACTIVE DUTY EDUCATIONAL ASSISTANCE.—(1)
Section 3015 is amended—
(A) in subsection (a)(1), by striking ‘‘$528’’
and inserting ‘‘$720’’; and
(B) in subsection (b)(1), by striking ‘‘$429’’
and inserting ‘‘$585’’.
(2) The amendments made by paragraph (1) shall
take effect on October 1, 2002, and shall apply with re-
spect to educational assistance allowances paid for months
after September 2002.
(3) In the case of an educational assistance allowance
paid for a month after September 2000, and before Octo-
ber 2002 under section 3015 of such title—
(A) subsection (a)(1) of such section shall be
applied by substituting ‘‘$600’’ for ‘‘$528’’; and
(B) subsection (b)(1) of such section shall be
applied by substituting ‘‘$487’’ for ‘‘$429’’.
(b) CPI ADJUSTMENT.—No adjustment in rates of
educational assistance shall be made under section
3015(g) of title 38, United States Code, for fiscal years
2001 and 2003.
SEC. 3. ADDITIONAL OPPORTUNITY FOR CERTAIN VEAP
PARTICIPANTS TO ENROLL IN BASIC EDU-
CATIONAL 
ASSISTANCE 
UNDER 
MONT-
GOMERY GI BILL.
(a) IN GENERAL.—Section 3018C(a)(2) is amended
to read as follows:
‘‘(2) has continuously served on active duty
since October 9, 1996, (excluding the periods re-
ferred to in section 3202(1)(C) of this title);’’.
(b) ENROLLMENT PERIOD.—Section 3018C(a)(5) is
amended by striking ‘‘during the one-year period begin-
ning on October 9, 1996,’’ and inserting ‘‘during the one-
year period beginning on the date of the enactment of the
Veterans and Dependents Millennium Education Act,’’.
(c) PAYMENT
AMOUNT
AND
PERIOD.—Section
3018C(b) is amended to read as follows:
‘‘(b)(1) Subject to paragraph (2), with respect to an
individual who makes an election under subsection (a) to
become entitled to basic education assistance under this
chapter—
‘‘(A) the basic pay of the individual shall be re-
duced (in a manner determined by the Secretary
concerned) until the total amount by which such
basic pay is reduced is $2,700; or
‘‘(B) to the extent that basic pay is not so re-
duced before the individual’s discharge or release
from active duty as specified in subsection (a)(4),
the Secretary concerned shall collect from the indi-
vidual, or reduce the retired or retainer pay of the
individual by, an amount equal to the difference be-
tween $2,700 and the total amount of reductions
under subparagraph (A), which shall be paid into
the Treasury of the United States as miscellaneous
receipts.
‘‘(2)(A) The Secretary concerned shall provide for an
18-month period, beginning on the date the individual
makes an election under subsection (a), for the individual
to pay that Secretary the amount due under paragraph
(1).
‘‘(B) Nothing in subparagraph (A) shall be construed
as modifying the period of eligibility for and entitlement
to basic education assistance under this chapter applicable
under section 3031 of this title.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to elections made
under section 3018C of title 38, United States Code, dur-
ing the one-year period beginning on the date of the enact-
ment of this Act.
SEC. 4. INCREASE IN RATES OF SURVIVORS AND DEPEND-
ENTS EDUCATIONAL ASSISTANCE.
(a) SURVIVORS
AND DEPENDENTS EDUCATIONAL
ASSISTANCE.—(1) Section 3532 is amended—
(A) in subsection (a)(1)—
(i) by striking ‘‘$485’’ and inserting
‘‘$720’’;
(ii) by striking ‘‘$365’’ and inserting
‘‘$540’’; and
(iii) by striking ‘‘$242’’ and inserting
‘‘$360’’;
(B) in subsection (a)(2), by striking ‘‘$485’’
and inserting ‘‘$720’’;
(C) in subsection (b), by striking ‘‘$485’’ and
inserting ‘‘$720’’; and
(D) in subsection (c)(2)—
(i) by striking ‘‘$392’’ and inserting
‘‘$582’’;
(ii) by striking ‘‘$294’’ and inserting
‘‘$436’’; and
(iii) by striking ‘‘$196’’ and inserting
‘‘$291’’.
(2) The amendments made by paragraph (1) shall
take effect on October 1, 2002, and shall apply with re-
spect to educational assistance allowances paid for months
after September 2002.
(3) In the case of an educational assistance allowance
paid for a month after September 2000 and before Octo-
ber 2002 under section 3532 of such title—
(A) subsection (a)(1) of such section shall be
applied by substituting—
(i) ‘‘$600’’ for ‘‘$485’’;
(ii) ‘‘$450’’ for ‘‘$365’’; and
(iii) ‘‘$300’’ for ‘‘$242’’;
(B) subsection (a)(2) of such section shall be
applied by substituting ‘‘$600’’ for ‘‘$485’’;
(C) subsection (b) of such section shall be ap-
plied by substituting ‘‘$600’’ for ‘‘$485’’; and
(D) subsection (c)(2) of such section shall be
applied by substituting—
(i) ‘‘$485’’ for ‘‘$392’’;
(ii) ‘‘$364’’ for ‘‘$294’’; and
(iii) ‘‘$242’’ for ‘‘$196’’.
(b) 
CORRESPONDENCE
COURSE.—(1) 
Section
3534(b) is amended by striking ‘‘$485’’ and inserting
‘‘$720’’.
(2) The amendment made by paragraph (1) shall
take effect on October 1, 2002, and shall apply with re-
spect to educational assistance allowances paid under sec-
tion 3534(b) of title 38, United States Code, for months
after September 2002.
(3) In the case of an educational assistance allowance
paid for a month after September 2000 and before Octo-
ber 2002 under section 3534 of such title, subsection (b)
of such section shall be applied by substituting ‘‘$600’’
for ‘‘$485’’.
(c) SPECIAL RESTORATIVE TRAINING.—(1) Section
3542(a) is amended—
(A) by striking ‘‘$485’’ and inserting ‘‘$720’’;
(B) by striking ‘‘$152’’ each place it appears
and inserting ‘‘$225’’; and
(C) by striking ‘‘$16.16’’ and inserting ‘‘$24’’.
(2) The amendments made by paragraph (1) shall
take effect on October 1, 2002, and shall apply with re-
spect to educational assistance allowances paid under sec-
tion 3542(a) of title 38, United States Code, for months
after September 2002.
(3) In the case of an educational assistance allowance
paid for a month after September 2000 and before Octo-
ber 2002 under section 3542 of such title, subsection (a)
of such section shall be applied by substituting—
(A) ‘‘$600’’ for ‘‘$485’’;
(B) ‘‘$188’’ for ‘‘$152’’; and
(C) ‘‘$20’’ for ‘‘$16.16’’.
(d) 
APPRENTICESHIP
TRAINING.—(1) 
Section
3687(b)(2) is amended—
(A) by striking ‘‘$353’’ and inserting ‘‘$524’’;
(B) by striking ‘‘$264’’ and inserting ‘‘$392’’;
(C) by striking ‘‘$175’’ and inserting ‘‘$260’’;
and
(D) by striking ‘‘$88’’ and inserting ‘‘$131’’.
(2) The amendments made by paragraph (1) shall
take effect on October 1, 2002, and shall apply with re-
spect to educational assistance allowances paid under sec-
tion 3687(b)(2) of title 38, United States Code, for
months after September 2002.
(3) In the case of an educational assistance allowance
paid for a month after September 2000 and before Octo-
ber 2002 under section 3687 of such title, subsection
(b)(2) of such section shall be applied by substituting—
(A) ‘‘$437’’ for ‘‘$353’’;
(B) ‘‘$327’’ for ‘‘$264’’;
(C) ‘‘$216’’ for ‘‘$175’’; and
(D) ‘‘$109’’ for ‘‘$88’’.
(e) PROVISION
FOR
ANNUAL
ADJUSTMENTS
TO
AMOUNTS OF ASSISTANCE.—
(1) CHAPTER 35.—(A) Subchapter VI of chap-
ter 35 is amended by adding at the end the following
new section:
‘‘§ 3564. Annual adjustment of amounts of educational
assistance
‘‘With respect to any fiscal year, the Secretary shall
provide a percentage increase (rounded to the nearest dol-
lar) in the rates payable under sections 3532, 3534(b),
and 3542(a) of this title equal to the percentage by
which—
‘‘(1) the Consumer Price Index (all items,
United States city average) for the 12-month period
ending on the June 30 preceding the beginning of
the fiscal year for which the increase is made, ex-
ceeds
‘‘(2) such Consumer Price Index for the 12-
month period preceding the 12-month period de-
scribed in paragraph (1).’’.
(B) The table of sections at the beginning of
chapter 35 is amended by inserting after the item
relating to section 3563 the following new item:
‘‘3564. Annual adjustment of amounts of educational assistance.’’.
(2) CHAPTER 36.—(A) Section 3687 is amended
by adding at the end the following new subsection:
‘‘(d) With respect to any fiscal year, the Secretary
shall provide a percentage increase (rounded to the near-
est dollar) in the rates payable under subsection (b)(2)
equal to the percentage by which—
‘‘(1) the Consumer Price Index (all items,
United States city average) for the 12-month period
ending on the June 30 preceding the beginning of
the fiscal year for which the increase is made, ex-
ceeds
‘‘(2) such Consumer Price Index for the 12-
month period preceding the 12-month period de-
scribed in paragraph (1).’’.
SEC. 5. ADJUSTED EFFECTIVE DATE FOR AWARD OF SUR-
VIVORS’ AND DEPENDENTS’ EDUCATIONAL
ASSISTANCE.
(a) IN GENERAL.—Section 5113 is amended—
(1) by redesignating subsection (b) as sub-
section (c);
(2) in subsection (a), by striking ‘‘subsection
(b) of this section’’ and inserting ‘‘subsections (b)
and (c)’’; and
(3) by inserting after subsection (a) the fol-
lowing new subsection:
‘‘(b)(1) When determining the effective date of an
award of survivors’ and dependents’ educational assistance
under chapter 35 of this title for an individual described
in paragraph (2) based on an original claim, the Secretary
shall consider the individual’s application (under section
3513 of this title) as having been filed on the effective
date from which the Secretary, by rating decision, deter-
mines that the individual is entitled to such educational
assistance (such entitlement being based on the total serv-
ice-connected disability evaluated as permanent in nature,
or the service-connected death, of the spouse or parent