I 
109TH CONGRESS 
1ST SESSION H. R. 4468 
To improve certain compensation, health care, and education benefits for 
individuals who serve in a reserve component of the uniformed services, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 7, 2005 
Mr. SMITH of Washington introduced the following bill; which was referred to 
the Committee on Armed Services, and in addition to the Committees on 
Government Reform and Ways and Means, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To improve certain compensation, health care, and education 
benefits for individuals who serve in a reserve component 
of the uniformed services, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Enhancing America’s Guard and Reserve Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents.
TITLE I—COMPENSATION MATTERS 
Sec. 101. Nonreduction in pay while Federal employee is serving on active duty 
in a reserve component of the uniformed services. 
Sec. 102. Assistance for State and local governments that continue to pay em-
ployees who serve on active duty in a reserve component of the 
uniformed services. 
Sec. 103. Active-duty reserve component employee credit added to general busi-
ness credit. 
Sec. 104. Eligibility for retired pay for non-regular service. 
TITLE II—HEALTH CARE AND EDUCATION MATTERS 
Sec. 201. Expanded eligibility of selected reserve members under TRICARE 
program. 
Sec. 202. Increase in amount of basic educational assistance under the Mont-
gomery GI Bill for members of reserve components. 
Sec. 203. Prohibition on denial of benefits under the Montgomery GI Bill for 
members of reserve components in conjunction with calls to ac-
tive duty. 
TITLE III—COMMUTING MATTERS 
Sec. 301. Limited use of telecommuting to satisfy inactive-duty training pre-
scribed or authorized for members of reserve components. 
Sec. 302. Priority for space-available travel for members of reserve components. 
TITLE I—COMPENSATION 
MATTERS 
SEC. 101. NONREDUCTION IN PAY WHILE FEDERAL EM-
PLOYEE IS SERVING ON ACTIVE DUTY IN A 
RESERVE COMPONENT OF THE UNIFORMED 
SERVICES. 
(a) IN GENERAL.—Subchapter IV of chapter 55 of 
title 5, United States Code, is amended by adding at the 
end the following new section: 
‘‘§ 5538. Nonreduction in pay while serving on active 
duty in a reserve component 
‘‘(a) An employee who is also a member of a reserve 
component and is absent from a position of employment 
with the Federal Government under a call or order to
serve on active duty for a period of more than 30 days 
shall be entitled to receive, for each pay period described 
in subsection (b), an amount equal to the amount by 
which— 
‘‘(1) the amount of civilian basic pay that would 
otherwise have been payable to the employee for 
such pay period if the employee’s civilian employ-
ment with the Government had not been interrupted 
by the service on active duty, exceeds (if at all) 
‘‘(2) the amount of military compensation that 
is payable to the employee for the service on active 
duty and is allocable to such pay period. 
‘‘(b)(1) Amounts under this section shall be payable 
with respect to each pay period (which would otherwise 
apply if the employee’s civilian employment had not been 
interrupted) that occurs— 
‘‘(A) while the employee serves on active duty 
for a period of more than 30 days; 
‘‘(B) while the employee is hospitalized for, or 
convalescing from, an illness or injury incurred in, 
or aggravated during, the performance of such active 
duty; or 
‘‘(C) during the 14-day period beginning at the 
end of such active duty or the end of the period re-
ferred to in subparagraph (B).
‘‘(2) Paragraph (1) shall not apply with respect to 
a pay period for which the employee receives civilian basic 
pay (including by taking any annual, military, or other 
paid leave) to which the employee is entitled by virtue of 
the employee’s civilian employment with the Government. 
‘‘(c) Any amount payable under this section to an em-
ployee shall be paid— 
‘‘(1) by the employing agency of the employee; 
‘‘(2) from the appropriation or fund that would 
be used to pay the employee if the employee were in 
a pay status; and 
‘‘(3) to the extent practicable, at the same time 
and in the same manner as would civilian basic pay 
if the employee’s civilian employment had not been 
interrupted. 
‘‘(d) In consultation with Secretary of Defense, the 
Office of Personnel Management shall prescribe such reg-
ulations as may be necessary to carry out this section. 
‘‘(e)(1) In consultation with the Office, the head of 
each agency referred to in section 2302(a)(2)(C)(ii) shall 
prescribe procedures to ensure that the rights under this 
section apply to the employees of such agency. 
‘‘(2) The Administrator of the Federal Aviation Ad-
ministration shall, in consultation with the Office, pre-
scribe procedures to ensure that the rights under this sec-
tion apply to the employees of that agency. 
‘‘(f) For the purpose of this section— 
‘‘(1) the terms ‘active duty for a period of more 
than 30 days’, ‘member’, and ‘reserve component’ 
have the meanings given such terms in section 101 
of title 37; 
‘‘(2) the term ‘civilian basic pay’ includes any 
amount payable under section 5304; 
‘‘(3) the term ‘employing agency’, as used with 
respect to an employee entitled to any payments 
under this section, means the agency or other entity 
of the Government (including an agency referred to 
in section 2302(a)(2)(C)(ii)) with respect to which 
the employee has reemployment rights under chapter 
43 of title 38; and 
‘‘(4) the term ‘military compensation’ has the 
meaning given the term ‘pay’ in section 101(21) of 
title 37.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of chapter 55 of title 5, United States 
Code, is amended by inserting after the item relating to 
section 5537 the following new item: 
‘‘5538. Nonreduction in pay while serving on active duty in a reserve compo-
nent.’’.
(c) APPLICATION OF AMENDMENT.—Section 5538 of 
title 5, United States Code, as added by subsection (a), 
shall apply with respect to pay periods (as described in 
subsection (b) of such section) beginning on or after the 
date of the enactment of this Act. 
SEC. 102. ASSISTANCE FOR STATE AND LOCAL GOVERN-
MENTS THAT CONTINUE TO PAY EMPLOYEES 
WHO SERVE ON ACTIVE DUTY IN A RESERVE 
COMPONENT OF THE UNIFORMED SERVICES. 
(a) IN GENERAL.—Chapter 17 of title 37, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 910. Assistance for State and local governments 
that continue to pay employees who 
serve on active duty 
‘‘(a) CONTINUATION OF CIVILIAN BASIC PAY.—It is 
the purpose of this section to encourage States and local 
governments to continue to pay a portion of the civilian 
compensation of those employees who are also members 
of a reserve component and are absent from a position 
of employment with the State or local government under 
a call or order to serve on active duty for a period of more 
than 30 days so that the employees receive compensation 
in an amount that, when taken together with their military 
pay, is at least equal to their civilian compensation.
‘‘(b) REIMBURSEMENT OFFERED.—(1) At the re-
quest of a State or local government that continues to pay 
all or a portion of the civilian compensation of an employee 
described in subsection (a), the Secretary concerned shall 
reimburse the State or local government for 50 percent 
of the civilian compensation paid by the State or local gov-
ernment for each pay period described in subsection (c), 
but not to exceed 50 percent of the difference (if any) be-
tween— 
‘‘(A) the amount of civilian compensation that 
would otherwise have been payable to the employee 
for such pay period if the employee’s civilian employ-
ment with the State or local government had not 
been interrupted by the service on active duty; and 
‘‘(B) the amount of military pay that is payable 
to the employee for the service on active duty and 
is allocable to such pay period. 
‘‘(2) If the pay periods described in subsection (c) 
extend more than nine consecutive months after the first 
day of the first month during which the employee began 
to serve on active duty for a period of more than 30 days, 
the reimbursement rate shall become 100 percent for the 
subsequent payments. However, as is the case under para-
graph (1), reimbursement shall be provided only for the 
difference (if any) between—
‘‘(A) the amount of civilian compensation that 
would otherwise have been payable to the employee 
for such pay period if the employee’s civilian employ-
ment with the State or local government had not 
been interrupted by the service on active duty; and 
‘‘(B) the amount of military pay that is payable 
to the employee for the service on active duty and 
is allocable to such pay period. 
‘‘(c) PAY PERIODS.—Reimbursement shall be pro-
vided under this section with respect to each pay period 
(which would otherwise apply if the employee’s civilian em-
ployment had not been interrupted) that occurs— 
‘‘(1) while the employee serves on active duty 
for a period of more than 30 days; 
‘‘(2) while the employee is hospitalized for, or 
convalescing from, an illness or injury incurred in, 
or aggravated during, the performance of such active 
duty; or 
‘‘(3) during the 14-day period beginning at the 
end of such active duty or the end of the period re-
ferred to in subparagraph (B). 
‘‘(d) EFFECT OF FAILURE TO RETURN TO EMPLOY-
MENT.—(1) If an employee described in subsection (a), 
with respect to whom reimbursement is provided to a 
State or local government under this section, fails to re-
port or apply for employment or reemployment with the 
State or local government by the end of the period referred 
to in subsection (c)(3), the employee shall refund to the 
Secretary concerned the total amount of the reimburse-
ment provided with respect to the employee. 
‘‘(2) Subject to paragraph (3), an obligation to re-
fund moneys to the United States imposed under para-
graph (1) is for all purposes a debt owed to the United 
States. 
‘‘(3) The Secretary concerned may waive, in whole 
or in part, a refund required under paragraph (1) if the 
Secretary concerned determines that recovery would be 
against equity and good conscience or would be contrary 
to the best interests of the United States. 
‘‘(4) A discharge in bankruptcy under title 11 that 
is entered less than five years after the end of the period 
referred to in subsection (c)(3) does not discharge the em-
ployee from a debt arising under paragraph (1). This 
paragraph applies to any case commenced under title 11 
after the date of the enactment of this section. 
‘‘(e) REGULATIONS.—The Secretaries concerned shall 
prescribe regulations to carry out this section. 
‘‘(f) DEFINITIONS.—In this section: 
‘‘(1) The term ‘civilian compensation’ means 
the wages or salary that an employee of a State or
local government normally receives from the employ-
ee’s employment by the State or local government. 
‘‘(2) The term ‘local government’ means an 
agency or political subdivision of a State. 
‘‘(3) The term ‘military pay’ has the meaning 
given the term ‘pay’ in section 101(21) of this title. 
‘‘(4) The term ‘State’ means each of the several 
States of the United States, the District of Colum-
bia, the Commonwealth of Puerto Rico, Guam, the 
Virgin Islands, and other territories or possessions 
of the United States.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of chapter 17 of title 37, is amended by 
inserting after the item relating to section 909 the fol-
lowing new item: 
‘‘910. Assistance for State and local governments that continue to pay employ-
ees who serve on active duty.’’. 
(c) APPLICATION OF AMENDMENT.—Section 910 of 
title 37, United States Code, as added by subsection (a), 
shall apply with respect to pay periods (as described in 
subsection (b) of such section) beginning on or after the 
date of the enactment of this Act.
SEC. 103. ACTIVE-DUTY RESERVE COMPONENT EMPLOYEE 
CREDIT 
ADDED 
TO 
GENERAL 
BUSINESS 
CREDIT. 
(a) ADDITION OF CREDIT.—Subpart D of part IV of 
subchapter A of chapter 1 of the Internal Revenue Code 
of 1986 (relating to business-related credits) is amended 
by adding at the end the following new section: 
‘‘SEC. 45J. ACTIVE-DUTY RESERVE COMPONENT EMPLOYEE 
CREDIT. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
in the case of an employer, the active-duty reserve compo-
nent employee credit determined under this section for the 
taxable year is an amount equal to 50 percent of the com-
pensation paid by the employer to an employee who is also 
a member of a reserve component during the taxable year 
when the employee was absent from employment for a rea-
son described in subsection (b), but not to exceed 50 per-
cent of the difference (if any) between— 
‘‘(1) the amount of compensation that would 
otherwise have been payable to the employee during 
such absence if the employee’s employment with the 
employer had not been interrupted by the employee’s 
absence; and 
‘‘(2) the amount of military pay that is payable 
to the employee during the absence.
‘‘(b) COVERED PAY PERIODS.—Subsection (a) shall 
apply with respect to an employee who is also a member 
of a reserve component— 
‘‘(1) while the employee serves on active duty 
for a period of more than 30 days; 
‘‘(2) while the employee is hospitalized for, or 
convalescing from, an illness or injury incurred in, 
or aggravated during, the performance of such active 
duty; or 
‘‘(3) during the 14-day period beginning at the 
end of such active duty or the end of the period re-
ferred to in subparagraph (B). 
‘‘(c) LIMITATION.—No credit shall be allowed under 
subsection (a) with respect to an employee on any day on 
which the employee was not scheduled to work (for a rea-
son other than such service on active duty) and ordinarily 
would not have worked. 
‘‘(d) DEFINITIONS.—For purposes of this section— 
‘‘(1) The terms ‘active duty for a period of 
more than 30 days’, ‘member’, and ‘reserve compo-
nent’ have the meanings given such terms in section 
101 of title 37, United States Code. 
‘‘(2) The term ‘compensation’ means any remu-
neration for employment, whether in cash or in kind, 
which is paid or incurred by a taxpayer and which
is deductible from the taxpayer’s gross income under 
section 162(a)(1).’’. 
(b) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.—Subsection (b) of section 38 of such Code (re-
lating to general business credit) is amended by striking 
‘‘plus’’ at the end of paragraph (18), by striking the period 
at the end of paragraph (19) and inserting ‘‘, plus’’, and 
by adding at the end the following new paragraph: 
‘‘(20) the active-duty reserve component em-
ployee credit determined under section 45J(a).’’. 
(c) CONFORMING AMENDMENT.—The table of sec-
tions for subpart D of part IV of subchapter A of chapter 
1 of the Internal Revenue Code of 1986 is amended by 
inserting after the item relating to section 45I the fol-
lowing new item: 
‘‘Sec. 45J. Active-duty reserve component employee credit.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
[December 31, 2004]. 
SEC. 104. ELIGIBILITY FOR RETIRED PAY FOR NON-REG-
ULAR SERVICE. 
(a) AGE AND SERVICE REQUIREMENTS.—Subsection 
(a) of section 12731 of title 10, United States Code, is 
amended to read as follows:
‘‘(a)(1) Except as provided in subsection (c), a person 
is entitled, upon application, to retired pay computed 
under section 12739 of this title, if the person— 
‘‘(A) satisfies one of the combinations of re-
quirements for minimum age and minimum number 
of years of service (computed under section 12732 of 
this title) that are specified in the table in para-
graph (2); 
‘‘(B) performed the last six years of qualifying 
service while a member of any category named in 
section 12732(a)(1) of this title, but not while a 
member of a regular component, the Fleet Reserve, 
or the Fleet Marine Corps Reserve, except that in 
the case of a person who completed 20 years of serv-
ice computed under section 12732 of this title before 
October 5, 1994, the number of years of qualifying 
service under this subparagraph shall be eight; and 
‘‘(C) is not entitled, under any other provision 
of law, to retired pay from an armed force or re-
tainer pay as a member of the Fleet Reserve or the 
Fleet Marine Corps Reserve. 
‘‘(2) The combinations of minimum age and min-
imum years of service required of a person under subpara-
graph (A) of paragraph (1) for entitlement to retired pay 
as provided in such paragraph are as follows:
‘‘If the person’s age, in years, 
The minimum years of 
is at least: 
service required is 
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20’’. 
(b) 20-YEAR LETTER.—Subsection (d) of such sec-
tion is amended by striking ‘‘the years of service required 
for eligibility for retired pay under this chapter’’ in the 
first sentence and inserting ‘‘20 years of service computed 
under section 12732 of this title’’. 
(c) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect on the first day of the first 
month beginning on or after the date of the enactment 
of this Act and shall apply with respect to retired pay pay-
able for that month and subsequent months. 
TITLE II—HEALTH CARE AND 
EDUCATION MATTERS 
SEC. 201. EXPANDED ELIGIBILITY OF SELECTED RESERVE 
MEMBERS UNDER TRICARE PROGRAM. 
(a) GENERAL ELIGIBILITY.—Subsection (a) of sec-
tion 1076d of title 10, United States Code, is amended— 
(1) by striking ‘‘(a) ELIGIBILITY.—A member’’ 
and inserting ‘‘(a) ELIGIBILITY.—(1) Except as pro-
vided in paragraph (2), a member’’;
(2) by striking ‘‘after the member completes’’ 
and all that follows through ‘‘one or more whole 
years following such date’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(2) Paragraph (1) does not apply to a member who 
is enrolled, or is eligible to enroll, in a health benefits plan 
under chapter 89 of title 5.’’. 
(b) CONDITION
FOR
TERMINATION
OF
ELIGI-
BILITY.—Subsection (b) of such section is amended by 
striking ‘‘(b) PERIOD
OF COVERAGE.—(1) TRICARE 
Standard’’ and all that follows through ‘‘(3) Eligibility’’ 
and inserting ‘‘(b) TERMINATION OF ELIGIBILITY UPON 
TERMINATION OF SERVICE.—Eligibility’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Such section is further amended— 
(A) by striking subsection (e); and 
(B) by redesignating subsection (g) as sub-
section (e) and transferring such subsection 
within such section so as to appear following 
subsection (d). 
(2) The heading for such section is amended to 
read as follows:
‘‘§ 1076d. TRICARE program: TRICARE standard cov-
erage for members of the selected re-
serve’’. 
(d) REPEAL
OF OBSOLETE PROVISION.—Section 
1076b of title 10, United States Code, is repealed. 
(e) CLERICAL AMENDMENTS.—The table of sections 
at the beginning of chapter 55 of title 10, United States 
Code, is amended— 
(1) by striking the item relating to section 
1076b; and 
(2) by striking the item relating to section 
1076d and inserting the following: 
‘‘1076d. TRICARE program: TRICARE Standard coverage for members of the 
Selected Reserve.’’. 
(f) SAVINGS PROVISION.—Enrollments in TRICARE 
Standard that are in effect on the day before the date of 
the enactment of this Act under section 1076d of title 10, 
United States Code, as in effect on such day, shall be con-
tinued until terminated after such day under such section 
1076d as amended by this section.
SEC. 202. INCREASE IN AMOUNT OF BASIC EDUCATIONAL 
ASSISTANCE UNDER THE MONTGOMERY GI 
BILL FOR MEMBERS OF RESERVE COMPO-
NENTS. 
(a) MEMBERS OF THE SELECTED RESERVE.—(1) 
Section 16131(b) of title 10, United States Code, is 
amended— 
(A) in paragraph (1), by striking ‘‘at the fol-
lowing rates’’ and all that follows through the end 
and inserting a period; and 
(B) in paragraph (2), by striking all and insert-
ing the following: 
‘‘(2)(A) The educational assistance provided under 
this chapter shall be based on the applicable percent under 
subparagraph (B) to the applicable rate provided under 
section 3015 of title 38 for a member whose entitlement 
is based on completion of an obligated period of active 
duty of three years. 
‘‘(B) The adjusted educational assistance under sub-
paragraph (A) shall be— 
‘‘(i) 50 percent for each month of full-time pur-
suit of a program of education; 
‘‘(ii) 37.5 percent for each month of three-quar-
ter-time pursuit of a program of education; 
‘‘(iii) 25 percent for each month of half-time 
pursuit of a program of education; and
‘‘(iv) an appropriately reduced percent, as de-
termined under regulations which the Secretary of 
Veterans Affairs shall prescribe, for each month of 
less than half-time pursuit of a program of edu-
cation, except that no payment may be made to a 
person for less than half-time pursuit if tuition as-
sistance is otherwise available to the person for such 
pursuit from the military department concerned.’’. 
(2) The amendments made by paragraph (1) shall 
apply with respect to educational assistance allowances 
under section 16131(b) of such title paid for months be-
ginning after the date of the enactment of this Act. 
(b) RESERVE COMPONENTS SUPPORTING CONTIN-
GENCY OPERATIONS.—(1) Section 16162(c)(4) of title 10, 
United States Code, is amended— 
(A) in subparagraph (A) by striking ‘‘40 per-
cent’’ and inserting ‘‘60 percent’’; and 
(B) in subparagraph (B) by striking ‘‘60 per-
cent’’ and inserting ‘‘70 percent’’. 
(2) The amendments made by paragraph (1) shall 
apply with respect to educational assistance allowances 
under section 16162(c)(4) of such title paid for months 
beginning after the date of the enactment of this Act.
SEC. 203. PROHIBITION ON DENIAL OF BENEFITS UNDER 
THE MONTGOMERY GI BILL FOR MEMBERS 
OF RESERVE COMPONENTS IN CONJUNCTION 
WITH CALLS TO ACTIVE DUTY. 
(a) IN GENERAL.—Section 16134 of title 10, United 
States Code, is amended— 
(1) by striking ‘‘Educational’’ and inserting 
‘‘(a) GENERAL RULE.—Educational’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) PROHIBITION ON TERMINATION OF ASSISTANCE 
DUE SOLELY TO CALL TO ACTIVE DUTY.—Service on ac-
tive duty pursuant to an order to active duty issued under 
section 12301(a), 12301(d), 12301(g), 12302, or 12304 
of this title alone does not constitute failure to participate 
satisfactorily in required training as a member of the Se-
lected Reserve under subsection (a)(2).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply before, on, or after the date of 
the enactment of this Act.
TITLE III—COMMUTING 
MATTERS 
SEC. 301. LIMITED USE OF TELECOMMUTING TO SATISFY 
INACTIVE-DUTY TRAINING PRESCRIBED OR 
AUTHORIZED FOR MEMBERS OF RESERVE 
COMPONENTS. 
Section 206 of title 37, United States Code, is 
amended by adding at the end the following new sub-
section: 
‘‘(f) The Secretary concerned may authorize a mem-
ber of the National Guard or of a reserve component of 
the uniformed services to use telecommuting to satisfy a 
regular period of instruction or period of appropriate duty 
prescribed or authorized for the member or to perform 
such other equivalent training, instruction, duty, or appro-
priate duties as the Secretary may prescribe or authorize. 
Telecommuting may not account for more than 16 hours 
of inactive-duty training by a member in any calendar- 
year quarter.’’. 
SEC. 302. PRIORITY FOR SPACE-AVAILABLE TRAVEL FOR 
MEMBERS OF RESERVE COMPONENTS. 
(a) PRIORITY
ON SAME BASIS
AS ACTIVE-DUTY 
MEMBERS.—(1) Chapter 1805 of title 10, United States 
Code, is amended by adding at the end the following new 
section:
‘‘§ 18507. Reserve component members: priority for 
space-available travel 
‘‘The Secretary of Defense shall provide that mem-
bers of the Selected Reserve are accorded eligibility for 
travel on Department of Defense aircraft on a space-avail-
able basis in the same category (or with the same priority) 
as is accorded to members of the armed forces serving on 
active duty.’’. 
(2) The table of sections at the beginning of such 
chapter is amended by adding at the end the following 
new item: 
‘‘18507. Reserve component members: priority for space-available travel.’’. 
(b) EFFECTIVE DATE.—Section 18507 of title 10, 
United States Code, as added by subsection (a), shall take 
effect at the end of the 180-day period beginning on the 
date of the enactment of this Act. 
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