124 
•HR 2642 EAH2 
(iii) In subsections (a)(1), (c)(1), 
(c)(1)(G), (d), and (e)(2) of section 3689. 
(iv) In section 3690( b)(3)(A). 
(v) In subsections (a) and (b) of section 
3692. 
(vi) In section 3697(a). 
(B) Section 3697A(b)(1) of such title is 
amended by striking ‘‘or 32’’ and inserting ‘‘32, 
or 33’’. 
(c) APPLICABILITY TO INDIVIDUALS UNDER MONT-
GOMERY GI BILL PROGRAM.— 
(1) INDIVIDUALS ELIGIBLE TO ELECT PARTICI-
PATION IN POST-9/11 EDUCATIONAL ASSISTANCE.—An 
individual may elect to receive educational assistance 
under chapter 33 of title 38, United States Code (as 
added by subsection (a)), if such individual— 
(A) as of August 1, 2009— 
(i) is entitled to basic educational as-
sistance under chapter 30 of title 38, United 
States Code, and has used, but retains un-
used, entitlement under that chapter; 
(ii) is entitled to educational assist-
ance under chapter 107, 1606, or 1607 of 
title 10, United States Code, and has used, 
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125 
•HR 2642 EAH2 
but retains unused, entitlement under the 
applicable chapter; 
(iii) is entitled to basic educational as-
sistance under chapter 30 of title 38, United 
States Code, but has not used any entitle-
ment under that chapter; 
(iv) is entitled to educational assist-
ance under chapter 107, 1606, or 1607 of 
title 10, United States Code, but has not 
used any entitlement under such chapter; 
(v) is a member of the Armed Forces 
who is eligible for receipt of basic edu-
cational assistance under chapter 30 of title 
38, United States Code, and is making con-
tributions toward such assistance under sec-
tion 3011(b) or 3012(c) of such title; or 
(vi) is a member of the Armed Forces 
who is not entitled to basic educational as-
sistance under chapter 30 of title 38, United 
States Code, by reason of an election under 
section 3011(c)(1) or 3012(d)(1) of such 
title; and 
(B) as of the date of the individual’s elec-
tion under this paragraph, meets the require-
ments for entitlement to educational assistance 
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126 
•HR 2642 EAH2 
under chapter 33 of title 38, United States Code 
(as so added). 
(2) CESSATION OF CONTRIBUTIONS TOWARD GI 
BILL.—Effective as of the first month beginning on or 
after the date of an election under paragraph (1) of 
an individual described by subparagraph (A)(v) of 
that paragraph, the obligation of the individual to 
make contributions under section 3011(b) or 3012(c) 
of title 38, United States Code, as applicable, shall 
cease, and the requirements of such section shall be 
deemed to be no longer applicable to the individual. 
(3) REVOCATION OF REMAINING TRANSFERRED 
ENTITLEMENT.— 
(A) ELECTION TO REVOKE.—If, on the date 
an individual described in subparagraph (A)(i) 
or (A)(iii) of paragraph (1) makes an election 
under that paragraph, a transfer of the entitle-
ment of the individual to basic educational as-
sistance under section 3020 of title 38, United 
States Code, is in effect and a number of months 
of the entitlement so transferred remain unuti-
lized, the individual may elect to revoke all or a 
portion of the entitlement so transferred that re-
mains unutilized. 
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127 
•HR 2642 EAH2 
(B) AVAILABILITY
OF
REVOKED
ENTITLE-
MENT.—Any entitlement revoked by an indi-
vidual under this paragraph shall no longer be 
available to the dependent to whom transferred, 
but shall be available to the individual instead 
for educational assistance under chapter 33 of 
title 38, United States Code (as so added), in ac-
cordance with the provisions of this subsection. 
(C) AVAILABILITY OF UNREVOKED ENTITLE-
MENT.—Any entitlement described in subpara-
graph (A) that is not revoked by an individual 
in accordance with that subparagraph shall re-
main available to the dependent or dependents 
concerned in accordance with the current trans-
fer of such entitlement under section 3020 of title 
38, United States Code. 
(4) POST-9/11 EDUCATIONAL ASSISTANCE.— 
(A) IN GENERAL.—Subject to subparagraph 
(B) and except as provided in paragraph (5), an 
individual making an election under paragraph 
(1) shall be entitled to educational assistance 
under chapter 33 of title 38, United States Code 
(as so added), in accordance with the provisions 
of such chapter, instead of basic educational as-
sistance under chapter 30 of title 38, United 
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128 
•HR 2642 EAH2 
States Code, or educational assistance under 
chapter 107, 1606, or 1607 of title 10, United 
States Code, as applicable. 
(B) LIMITATION ON ENTITLEMENT FOR CER-
TAIN INDIVIDUALS.—In the case of an individual 
making an election under paragraph (1) who is 
described by subparagraph (A)(i) of that para-
graph, the number of months of entitlement of 
the individual to educational assistance under 
chapter 33 of title 38, United States Code (as so 
added), shall be the number of months equal to— 
(i) the number of months of unused en-
titlement of the individual under chapter 30 
of title 38, United States Code, as of the 
date of the election, plus 
(ii) the number of months, if any, of 
entitlement revoked by the individual under 
paragraph (3)(A). 
(5) CONTINUING ENTITLEMENT TO EDUCATIONAL 
ASSISTANCE NOT AVAILABLE UNDER
9/11 ASSIST-
ANCE PROGRAM.— 
(A) IN GENERAL.—In the event educational 
assistance to which an individual making an 
election under paragraph (1) would be entitled 
under chapter 30 of title 38, United States Code, 
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129 
•HR 2642 EAH2 
or chapter 107, 1606, or 1607 of title 10, United 
States Code, as applicable, is not authorized to 
be available to the individual under the provi-
sions of chapter 33 of title 38, United States 
Code (as so added), the individual shall remain 
entitled to such educational assistance in accord-
ance with the provisions of the applicable chap-
ter. 
(B) CHARGE FOR USE OF ENTITLEMENT.— 
The utilization by an individual of entitlement 
under subparagraph (A) shall be chargeable 
against the entitlement of the individual to edu-
cational assistance under chapter 33 of title 38, 
United States Code (as so added), at the rate of 
one month of entitlement under such chapter 33 
for each month of entitlement utilized by the in-
dividual under subparagraph (A) (as determined 
as if such entitlement were utilized under the 
provisions of chapter 30 of title 38, United 
States Code, or chapter 107, 1606, or 1607 of 
title 10, United States Code, as applicable). 
(6) ADDITIONAL
POST-9/11
ASSISTANCE
FOR 
MEMBERS HAVING MADE CONTRIBUTIONS TOWARD 
GI BILL.— 
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130 
•HR 2642 EAH2 
(A) ADDITIONAL ASSISTANCE.—In the case 
of an individual making an election under para-
graph (1) who is described by clause (i), (iii), or 
(v) of subparagraph (A) of that paragraph, the 
amount of educational assistance payable to the 
individual under chapter 33 of title 38, United 
States Code (as so added), as a monthly stipend 
payable under paragraph (1)(B) of section 
3313(c) of such title, or under paragraphs (2) 
through (7) of that section (as applicable), shall 
be the amount otherwise payable as a monthly 
stipend under the applicable paragraph in-
creased by the amount equal to— 
(i) the total amount of contributions 
toward basic educational assistance made 
by the individual under section 3011(b) or 
3012(c) of title 38, United States Code, as 
of the date of the election, multiplied by 
(ii) the fraction— 
(I) the numerator of which is— 
(aa) the number of months of 
entitlement to basic educational 
assistance under chapter 30 of 
title 38, United States Code, re-
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131 
•HR 2642 EAH2 
maining to the individual at the 
time of the election; plus 
(bb) the number of months, if 
any, of entitlement under such 
chapter 30 revoked by the indi-
vidual under paragraph (3)(A); 
and 
(II) the denominator of which is 
36 months. 
(B) MONTHS OF REMAINING ENTITLEMENT 
FOR CERTAIN INDIVIDUALS.—In the case of an 
individual covered by subparagraph (A) who is 
described by paragraph (1)(A)(v), the number of 
months of entitlement to basic educational assist-
ance remaining to the individual for purposes of 
subparagraph (A)(ii)(I)(aa) shall be 36 months. 
(C) TIMING
OF
PAYMENT.—The amount 
payable with respect to an individual under sub-
paragraph (A) shall be paid to the individual to-
gether with the last payment of the monthly sti-
pend payable to the individual under paragraph 
(1)(B) of section 3313(c) of title 38, United 
States Code (as so added), or under paragraphs 
(2) through (7) of that section (as applicable), 
before the exhaustion of the individual’s entitle-
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132 
•HR 2642 EAH2 
ment to educational assistance under chapter 33 
of such title (as so added). 
(7) CONTINUING ENTITLEMENT TO ADDITIONAL 
ASSISTANCE FOR CRITICAL SKILLS OR SPECIALITY 
AND ADDITIONAL SERVICE.—An individual making 
an election under paragraph (1)(A) who, at the time 
of the election, is entitled to increased educational as-
sistance under section 3015(d) of title 38, United 
States Code, or section 16131(i) of title 10, United 
States Code, or supplemental educational assistance 
under subchapter III of chapter 30 of title 38, United 
States Code, shall remain entitled to such increased 
educational assistance or supplemental educational 
assistance in the utilization of entitlement to edu-
cational assistance under chapter 33 of title 38, 
United States Code (as so added), in an amount 
equal to the quarter, semester, or term, as applicable, 
equivalent of the monthly amount of such increased 
educational assistance or supplemental educational 
assistance payable with respect to the individual at 
the time of the election. 
(8) IRREVOCABILITY OF ELECTIONS.—An elec-
tion under paragraph (1) or (3)(A) is irrevocable. 
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133 
•HR 2642 EAH2 
(d) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on August 1, 
2009. 
INCREASE IN AMOUNTS OF BASIC EDUCATIONAL 
ASSISTANCE UNDER THE MONTGOMERY GI BILL 
SEC. 5004. (a) EDUCATIONAL ASSISTANCE BASED ON 
THREE-YEAR PERIOD
OF OBLIGATED SERVICE.—Sub-
section (a)(1) of section 3015 of title 38, United States Code, 
is amended— 
(1) by striking subparagraphs (A) through (C) 
and inserting the following new subparagraph: 
‘‘(A) for months occurring during the period be-
ginning on August 1, 2008, and ending on the last 
day of fiscal year 2009, $1,321; and’’; and 
(2) by redesignating subparagraph (D) as sub-
paragraph (B). 
(b) EDUCATIONAL ASSISTANCE BASED ON TWO-YEAR 
PERIOD
OF OBLIGATED SERVICE.—Subsection (b)(1) of 
such section is amended— 
(1) by striking subparagraphs (A) through (C) 
and inserting the following new subparagraph: 
‘‘(A) for months occurring during the period be-
ginning on August 1, 2008, and ending on the last 
day of fiscal year 2009, $1,073; and’’; and 
(2) by redesignating subparagraph (D) as sub-
paragraph (B). 
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134 
•HR 2642 EAH2 
(c) MODIFICATION OF MECHANISM FOR COST-OF-LIV-
ING ADJUSTMENTS.—Subsection (h)(1) of such section is 
amended by striking subparagraphs (A) and (B) and in-
serting the following new subparagraphs: 
‘‘(A) the average cost of undergraduate tui-
tion in the United States, as determined by the 
National Center for Education Statistics, for the 
last academic year preceding the beginning of 
the fiscal year for which the increase is made, ex-
ceeds 
‘‘(B) the average cost of undergraduate tui-
tion in the United States, as so determined, for 
the academic year preceding the academic year 
described in subparagraph (A).’’. 
(d) EFFECTIVE DATE.— 
(1) IN
GENERAL.—The amendments made by 
this section shall take effect on August 1, 2008. 
(2) NO COST-OF-LIVING ADJUSTMENT FOR FISCAL 
YEAR 2009.—The adjustment required by subsection 
(h) of section 3015 of title 38, United States Code (as 
amended by this section), in rates of basic educational 
assistance payable under subsections (a) and (b) of 
such section (as so amended) shall not be made for 
fiscal year 2009. 
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135 
•HR 2642 EAH2 
MODIFICATION OF AMOUNT AVAILABLE FOR REIMBURSE-
MENT
OF
STATE
AND
LOCAL
AGENCIES
ADMIN-
ISTERING VETERANS EDUCATION BENEFITS 
SEC. 5005. Section 3674(a)(4) of title 38, United 
States Code, is amended by striking ‘‘may not exceed’’ and 
all that follows through the end and inserting ‘‘shall be 
$19,000,000.’’. 
AUTHORITY TO TRANSFER UNUSED EDUCATION BENEFITS 
TO FAMILY MEMBERS FOR CAREER SERVICE MEMBERS 
SEC. 5006. (a) AUTHORITY
TO TRANSFER MONT-
GOMERY GI BILL BENEFITS TO A DEPENDENT.—Section 
3020 of title 38, United States Code, is amended— 
(1) by striking the section heading and sub-
sections (a) and (b) and inserting the following: 
‘‘§ 3020. Authority to transfer unused education bene-
fits to family members for career service 
members 
‘‘(a) IN GENERAL.—Subject to the provisions of this 
section, the Secretary of Defense may authorize the Sec-
retary concerned, to promote recruitment and retention of 
members of the Armed Forces, to permit an individual de-
scribed in subsection (b) who is entitled to basic educational 
assistance under this subchapter to elect to transfer to one 
or more of the dependents specified in subsection (c) the un-
used portion of entitlement to such assistance, subject to the 
limitation under subsection (d). 
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136 
•HR 2642 EAH2 
‘‘(b) ELIGIBLE INDIVIDUALS.—An individual referred 
to in subsection (a) is any member of the Armed Forces— 
‘‘(1) who, while serving on active duty or as a 
member of the Selected Reserve at the time of the ap-
proval by the Secretary concerned of the member’s re-
quest to transfer entitlement to basic educational as-
sistance under this section, has completed six years of 
service in the Armed Forces and enters into an agree-
ment to serve at least four more years as a member 
of the Armed Forces; or 
‘‘(2) as determined in regulations pursuant to 
subsection (k).’’; 
(2) by striking subsection (d) and inserting the 
following: 
‘‘(d) LIMITATION ON MONTHS OF TRANSFER.—(1) An 
individual approved to transfer an entitlement to basic edu-
cational assistance under this section may transfer any un-
used entitlement to one or more of the dependents specified 
in subsection (c). 
‘‘(2) The total number of months of entitlement trans-
ferred by an individual under this section may not exceed 
36 months. The Secretary of Defense may prescribe regula-
tions that would limit the months of entitlement that may 
be transferred under this section to no less than 18 
months.’’; 
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137 
•HR 2642 EAH2 
(3) in subsection (f)(1) by striking ‘‘without re-
gard to whether’’ and inserting ‘‘only while’’; and 
(4) in subsection (f)(2) by inserting ‘‘as long as 
the individual is serving on active duty or as a mem-
ber of the Selected Reserve’’ after ‘‘so transferred’’; 
(5) by adding at the end of subsection (f) the fol-
lowing: 
‘‘(3) Entitlement transferred under this section may 
not be treated as marital property, or the asset of a marital 
estate, subject to division in a divorce or other civil pro-
ceeding.’’; 
(6) in subsection (h)(5) by inserting ‘‘may use 
the benefit without regard to the 10-year delimiting 
date, but’’ after ‘‘under this section’’; and 
(7) by striking subsection (k) and inserting the 
following: 
‘‘(k) REGULATIONS.—The Secretary of Defense, in co-
ordination with the Secretary of Veterans Affairs, shall pre-
scribe regulations for purposes of this section. Such regula-
tions shall specify— 
‘‘(1) the manner of authorizing the military de-
partments to offer transfer of entitlements under this 
section; 
‘‘(2) the eligibility criteria in accordance with 
subsection (b); 
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138 
•HR 2642 EAH2 
‘‘(3) the limitations on the amount of entitlement 
eligible to be transferred; and 
‘‘(4) the manner and effect of an election to mod-
ify or revoke a transfer of entitlement under sub-
section (f)(2).’’. 
(b) AUTHORITY TO TRANSFER MONTGOMERY GI BILL 
FOR THE SELECTED RESERVE BENEFITS TO A DEPEND-
ENT.—Chapter 1606 of title 10, United States Code, is 
amended by inserting after section 16132 the following: 
‘‘§ 16132a. Authority to transfer unused education 
benefits to family members 
‘‘(a) IN GENERAL.—Subject to regulation prescribed 
by the Secretary of Defense, the Secretary concerned may 
permit a member described in subsection (b) who is entitled 
to basic educational assistance under this chapter to elect 
to transfer to one or more of the dependents specified in 
subsection (c) a portion of such member’s entitlement to 
such assistance, subject to the limitation under subsection 
(d). 
‘‘(b) ELIGIBLE MEMBERS.—A member referred to in 
subsection (a) is a member of the Selected Reserve of the 
Ready Reserve who, at the time of the approval of the mem-
ber’s request to transfer entitlement to basic educational as-
sistance under this section, has completed— 
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139 
•HR 2642 EAH2 
‘‘(1) at least six years of service in the Selected 
Reserve and enters into an agreement to service at 
least four more years as a member of the armed 
forces; or 
‘‘(2) the years of service as determined in regula-
tions pursuant to subsection (j). 
‘‘(c) ELIGIBLE DEPENDENTS.—A member approved to 
transfer an entitlement to basic educational assistance 
under this section may transfer the member’s entitlement 
as follows: 
‘‘(1) To the member’s spouse. 
‘‘(2) To one or more of the member’s children. 
‘‘(3) To a combination of the individuals referred 
to in paragraphs (1) and (2). 
‘‘(d) LIMITATION ON MONTHS OF TRANSFER.—The 
total number of months of entitlement transferred by a 
member under this section may not exceed 36 months. The 
Secretary of Defense may prescribe regulations that would 
limit the months of entitlement that may be transferred 
under this section to no less than 18 months. 
‘‘(e) DESIGNATION
OF
TRANSFEREE.—A member 
transferring an entitlement to basic educational assistance 
under this section shall— 
‘‘(1) designate the dependent or dependents to 
whom such entitlement is being transferred; 
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140 
•HR 2642 EAH2 
‘‘(2) designate the number of months of such en-
titlement to be transferred to each such dependent; 
and 
‘‘(3) specify the period for which the transfer 
shall be effective for each dependent designated under 
paragraph (1). 
‘‘(f) TIME FOR TRANSFER; REVOCATION AND MODI-
FICATION.—(1) Subject to the time limitation for use of en-
titlement under section 16133, a member approved to trans-
fer entitlement to basic educational assistance under this 
section may transfer such entitlement at any time after the 
approval of the member’s request to transfer such entitle-
ment. 
‘‘(2) A member transferring entitlement under this sec-
tion may modify or revoke at any time the transfer of any 
unused portion of the entitlement so transferred. The modi-
fication or revocation of the transfer of entitlement under 
this paragraph shall be made by the submittal of written 
notice of the action to both the Secretary concerned and the 
Secretary of Veterans Affairs. 
‘‘(3) Entitlement transferred under this section may 
not be treated as marital property, or the asset of a marital 
estate, subject to division in a divorce or other civil pro-
ceeding. 
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141 
•HR 2642 EAH2 
‘‘(g) COMMENCEMENT OF USE.—A dependent to whom 
entitlement to basic educational assistance is transferred 
under this section may not commence the use of the trans-
ferred entitlement until— 
‘‘(1) in the case of entitlement transferred to a 
spouse, the completion by the member making the 
transfer of at least— 
‘‘(A) six years of service in the armed forces; 
or 
‘‘(B) the years of service as determined in 
regulations pursuant to subsection (j); or 
‘‘(2) in the case of entitlement transferred to a 
child, both— 
‘‘(A) the completion by the member making 
the transfer of at least— 
‘‘(i) ten years of service in the armed 
forces; or 
‘‘(ii) the years of service as determined 
in regulations pursuant to subsection (j); 
and 
‘‘(B) either— 
‘‘(i) the completion by the child of the 
requirements of a secondary school diploma 
(or equivalency certificate); or 
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142 
•HR 2642 EAH2 
‘‘(ii) the attainment by the child of 18 
years of age. 
‘‘(h) ADDITIONAL ADMINISTRATIVE MATTERS.—(1) 
The use of any entitlement to basic educational assistance 
transferred under this section shall be charged against the 
entitlement of the member making the transfer at the rate 
of one month for each month of transferred entitlement that 
is used. 
‘‘(2) Except as provided under subsection (e)(2) and 
subject to paragraphs (5) and (6), a dependent to whom 
entitlement is transferred under this section is entitled to 
basic educational assistance under this chapter in the same 
manner as the member from whom the entitlement was 
transferred. 
‘‘(3) The monthly rate of educational assistance pay-
able to a dependent to whom entitlement is transferred 
under this section shall be the monthly amount payable 
under sections 16131 and 16131a to the member making 
the transfer. 
‘‘(4) The death of a member transferring an entitle-
ment under this section shall not affect the use of the entitle-
ment by the dependent to whom the entitlement is trans-
ferred. 
‘‘(5) The involuntary separation or retirement of the 
member— 
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143 
•HR 2642 EAH2 
‘‘(A) because of a nondiscretionary provision of 
law for age or years of service; 
‘‘(B) because of a policy prescribed by the Sec-
retary concerned mandating such separation or re-
tirement based solely on age or years of service for the 
prescribed pay grade of an enlisted member; 
‘‘(C) under section 16133(b); or 
‘‘(D) because of medical disqualification which is 
not the result of gross negligence or misconduct of the 
member, 
shall not affect the use of entitlement by the dependent to 
whom the entitlement is transferred. 
‘‘(6) A child to whom entitlement is transferred under 
this section may not use any entitlement so transferred after 
attaining the age of 26 years. 
‘‘(7) The administrative provisions of this chapter 
shall apply to the use of entitlement transferred under this 
section, except that the dependent to whom the entitlement 
is transferred shall be treated as the eligible member for 
purposes of such provisions. 
‘‘(8) The purposes for which a dependent to whom enti-
tlement is transferred under this section may use such enti-
tlement shall include the pursuit and completion of the re-
quirements of a secondary school diploma (or equivalency 
certificate). 
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144 
•HR 2642 EAH2 
‘‘(i) OVERPAYMENT.—(1) In the event of an overpay-
ment of basic educational assistance with respect to a de-
pendent to whom entitlement is transferred under this sec-
tion, the dependent and the member making the transfer 
shall be jointly and severally liable to the United States 
for the amount of the overpayment for purposes of section 
3685 of title 38. 
‘‘(2) Except as provided in paragraph (3), if a mem-
ber’s whose eligibility is terminated under section 16134(2), 
the amount of any transferred entitlement under this sec-
tion that is used by a dependent of the member as of the 
date of such termination shall be treated as an overpayment 
of basic educational assistance under paragraph (1). 
‘‘(3) Paragraph (2) shall not apply in the case of a 
member who fails to complete service agreed to by the mem-
ber— 
‘‘(A) by reason of the death of the member; or 
‘‘(B) for a reason referred to in section 16133(b). 
‘‘(j) REGULATIONS.—The Secretary of Defense, in con-
sultation with the Secretary of Veterans Affairs, shall pre-
scribe regulations for purposes of this section. Such regula-
tions shall specify— 
‘‘(1) the manner of authorizing the military de-
partments to offer transfer of entitlements under this 
section; 
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•HR 2642 EAH2 
‘‘(2) the eligibility criteria in accordance with 
subsection (b); 
‘‘(3) the manner and effect of an election to mod-
ify or revoke a transfer of entitlement under sub-
section (f)(2); and 
‘‘(4) the manner in which the provisions referred 
to in subsections (h)(4) and (5) shall be administered 
with respect to a dependent to whom entitlement is 
transferred under this section.’’. 
(c) AUTHORITY TO TRANSFER RESERVE EDUCATIONAL 
ASSISTANCE PROGRAM BENEFITS
TO
A DEPENDENT.— 
Chapter 1607 of such title is amended by inserting after 
section 16163 the following: 
‘‘§ 16163a. Authority to transfer unused education 
benefits to family members 
‘‘(a) IN GENERAL.—Subject to the provisions of this 
section, the Secretary concerned may permit, at such Sec-
retary’s sole discretion, a member described in subsection 
(b) who is entitled to basic educational assistance under this 
chapter to elect to transfer to one or more of the dependents 
specified in subsection (c) a portion of such member’s enti-
tlement to such assistance, subject to the limitation under 
subsection (d). 
‘‘(b) ELIGIBLE MEMBERS.—A member referred to in 
subsection (a) is a member of the armed forces who, at the 
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146 
•HR 2642 EAH2 
time of the approval of the member’s request to transfer en-
titlement to basic educational assistance under this section, 
has completed at least— 
‘‘(1) six years of service in the armed forces and 
enters into an agreement to serve at least four more 
years as a member of the armed forces; or 
‘‘(2) the years of service as determined in regula-
tions pursuant to section (j). 
‘‘(c) ELIGIBLE DEPENDENTS.—A member approved to 
transfer an entitlement to basic educational assistance 
under this section may transfer the member’s entitlement 
as follows: 
‘‘(1) To the member’s spouse. 
‘‘(2) To one or more of the member’s children. 
‘‘(3) To a combination of the individuals referred 
to in paragraphs (1) and (2). 
‘‘(d) LIMITATION ON MONTHS OF TRANSFER.—The 
total number of months of entitlement transferred by a 
member under this section may not exceed 36 months. The 
Secretary of Defense may prescribe regulations that would 
limit the months of entitlement that may be transferred 
under this section to no less than 18 months. 
‘‘(e) DESIGNATION
OF
TRANSFEREE.—A member 
transferring an entitlement to basic educational assistance 
under this section shall— 
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•HR 2642 EAH2 
‘‘(1) designate the dependent or dependents to 
whom such entitlement is being transferred; 
‘‘(2) designate the number of months of such en-
titlement to be transferred to each such dependent; 
and 
‘‘(3) specify the period for which the transfer 
shall be effective for each dependent designated under 
paragraph (1). 
‘‘(f) TIME FOR TRANSFER; REVOCATION AND MODI-
FICATION.—(1) Subject to the time limitation for use of en-
titlement under section 16164, a member approved to trans-
fer entitlement to basic educational assistance under this 
section may transfer such entitlement only while serving 
as a member of the armed forces when the transfer is exe-
cuted. 
‘‘(2) A member transferring entitlement under this sec-
tion may modify or revoke at any time the transfer of any 
unused portion of the entitlement so transferred. The modi-
fication or revocation of the transfer of entitlement under 
this paragraph shall be made by the submittal of written 
notice of the action to both the Secretary concerned and the 
Secretary of Veterans Affairs. 
‘‘(3) Entitlement transferred under this section may 
not be treated as marital property, or the asset of a marital 
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148 
•HR 2642 EAH2 
estate, subject to division in a divorce or other civil pro-
ceeding. 
‘‘(g) COMMENCEMENT OF USE.—A dependent to whom 
entitlement to basic educational assistance is transferred 
under this section may not commence the use of the trans-
ferred entitlement until— 
‘‘(1) in the case of entitlement transferred to a 
spouse, the completion by the member making the 
transfer of at least— 
‘‘(A) six years of service in the armed forces; 
or 
‘‘(B) the years of service as determined in 
regulations pursuant to subsection (j); or 
‘‘(2) in the case of entitlement transferred to a 
child, both— 
‘‘(A) the completion by the member making 
the transfer of at least— 
‘‘(i) ten years of service in the armed 
forces; or 
‘‘(ii) the years of service as determined 
in regulations pursuant to subsection (j); 
and 
‘‘(B) either— 
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149 
•HR 2642 EAH2 
‘‘(i) the completion by the child of the 
requirements of a secondary school diploma 
(or equivalency certificate); or 
‘‘(ii) the attainment by the child of 18 
years of age. 
‘‘(h) ADDITIONAL ADMINISTRATIVE MATTERS.—(1) 
The use of any entitlement to basic educational assistance 
transferred under this section shall be charged against the 
entitlement of the member making the transfer at the rate 
of one month for each month of transferred entitlement that 
is used. 
‘‘(2) Except as provided under subsection (e)(2) and 
subject to paragraphs (5) and (6), a dependent to whom 
entitlement is transferred under this section is entitled to 
basic educational assistance under this chapter in the same 
manner as the member from whom the entitlement was 
transferred. 
‘‘(3) The monthly rate of educational assistance pay-
able to a dependent to whom entitlement is transferred 
under this section shall be the monthly amount payable 
under sections 16162 and 16162a to the member making 
the transfer. 
‘‘(4) The death of a member transferring an entitle-
ment under this section shall not affect the use of the entitle-
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•HR 2642 EAH2 
ment by the dependent to whom the entitlement is trans-
ferred. 
‘‘(5) Notwithstanding section 16164(a)(2), a child to 
whom entitlement is transferred under this section may use 
the benefit without regard to the 10-year delimiting date, 
but may not use any entitlement so transferred after attain-
ing the age of 26 years. 
‘‘(6) The administrative provisions of this chapter 
shall apply to the use of entitlement transferred under this 
section, except that the dependent to whom the entitlement 
is transferred shall be treated as the eligible member for 
purposes of such provisions. 
‘‘(7) The purposes for which a dependent to whom enti-
tlement is transferred under this section may use such enti-
tlement shall include the pursuit and completion of the re-
quirements of a secondary school diploma (or equivalency 
certificate). 
‘‘(i) OVERPAYMENT.— 
‘‘(1) JOINT
AND
SEVERAL
LIABILITY.—In the 
event of an overpayment of basic educational assist-
ance with respect to a dependent to whom entitlement 
is transferred under this section, the dependent and 
the member making the transfer shall be jointly and 
severally liable to the United States for the amount 
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151 
•HR 2642 EAH2 
of the overpayment for purposes of section 3685 of 
title 38. 
‘‘(2) FAILURE TO COMPLETE SERVICE AGREE-
MENT.—Except as provided in paragraph (3), if an 
individual transferring entitlement under this section 
fails to complete the service agreed to by the indi-
vidual under subsection (b)(1) in accordance with the 
terms of the agreement of the individual under that 
subsection, the amount of any transferred entitlement 
under this section that is used by a dependent of the 
individual as of the date of such failure shall be treat-
ed as an overpayment of educational assistance under 
paragraph (1). 
‘‘(3) Paragraph (2) shall not apply in the case 
of an individual who fails to complete service agreed 
to by the individual— 
‘‘(A) by reason of the death of the indi-
vidual; or 
‘‘(B) for a reason referred to in section 
16133(b). 
‘‘(j) REGULATIONS.—(1) The Secretary of Defense, in 
coordination with the Secretary of Veterans Affairs, shall 
prescribe regulations for purposes of this section. 
‘‘(2) Such regulations shall specify— 
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152 
•HR 2642 EAH2 
‘‘(A) the manner of authorizing the transfer of 
entitlements under this section; 
‘‘(B) the eligibility criteria in accordance with 
subsection (b); and 
‘‘(C) the manner and effect of an election to 
modify or revoke a transfer of entitlement under sub-
section (f)(2). 
‘‘(k) SECRETARY CONCERNED DEFINED.—For pur-
poses of this section, the term ‘Secretary concerned’ has the 
meaning given in section 101(a)(9) in the case of a member 
of the armed forces.’’. 
(d) CONFORMING AMENDMENTS.—Section 16133(a) of 
title 10, United States Code, is amended by striking ‘‘(1)’’ 
and all that follows through the period at the end of the 
subsection and inserting ‘‘on the date the person is sepa-
rated from the Selected Reserve.’’. 
(e) CLERICAL AMENDMENTS.—(1) The table of sections 
at the beginning of chapter 30 of title 38, United States 
Code, is amended by striking the item relating to section 
3020 and inserting the following new item: 
‘‘3020. Authority to transfer unused education benefits to family members of ca-
reer service members.’’. 
(2) The table of sections at the beginning of chapter 
1606 of title 10, United States Code, is amended by insert-
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153 
•HR 2642 EAH2 
ing after the item relating to section 16132 the following 
new item: 
‘‘16132a. Authority to transfer unused education benefits to family members.’’. 
(3) The table of sections at the beginning of chapter 
1607 of such title is amended by inserting after the item 
relating to section 16163 the following new item: 
‘‘16163a. Authority to transfer unused education benefits to family members.’’. 
TITLE VI—ACCOUNTABILITY AND 
TRANSPARENCY IN GOVERNMENT CONTRACTING 
CHAPTER 1—CLOSE THE CONTRACTOR FRAUD 
LOOPHOLE 
SHORT TITLE 
SEC. 6101. This chapter may be cited as the ‘‘Close 
the Contractor Fraud Loophole Act’’. 
REVISION OF THE FEDERAL ACQUISITION REGULATION 
SEC. 6102. The Federal Acquisition Regulation shall 
be amended within 180 days after the date of the enactment 
of this Act pursuant to FAR Case 2007–006 (as published 
at 72 Fed Reg. 64019, November 14, 2007) or any follow- 
on FAR case to include provisions that require timely noti-
fication by Federal contractors of violations of Federal 
criminal law or overpayments in connection with the 
award or performance of covered contracts or subcontracts, 
including those performed outside the United States and 
those for commercial items. 
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154 
•HR 2642 EAH2 
DEFINITION 
SEC. 6103. In this chapter, the term ‘‘covered contract’’ 
means any contract in an amount greater than $5,000,000 
and more than 120 days in duration. 
CHAPTER 2—GOVERNMENT FUNDING 
TRANSPARENCY 
SHORT TITLE 
SEC. 6201. This chapter may be cited as the ‘‘Govern-
ment Funding Transparency Act of 2008’’. 
FINANCIAL DISCLOSURE REQUIREMENTS FOR CERTAIN 
RECIPIENTS OF FEDERAL AWARDS 
SEC. 6202. (a) DISCLOSURE REQUIREMENTS.—Sec-
tion 2(b)(1) of the Federal Funding Accountability and 
Transparency Act (Public Law 109–282; 31 U.S.C. 6101 
note) is amended— 
(1) by striking ‘‘and’’ at the end of subpara-
graph (E); 
(2) by redesignating subparagraph (F) as sub-
paragraph (G); and 
(3) by inserting after subparagraph (E) the fol-
lowing new subparagraph: 
‘‘(F) the names and total compensation of 
the five most highly compensated officers of the 
entity if— 
‘‘(i) the entity in the preceding fiscal 
year received— 
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•HR 2642 EAH2 
‘‘(I) 80 percent or more of its an-
nual gross revenues in Federal awards; 
and 
‘‘(II) $25,000,000 or more in an-
nual gross revenues from Federal 
awards; and 
‘‘(ii) the public does not have access to 
information about the compensation of the 
senior executives of the entity through peri-
odic reports filed under section 13(a) or 
15(d) of the Securities Exchange Act of 
1934 (15 U.S.C. 78m(a), 78o(d)) or section 
6104 of the Internal Revenue Code of 
1986.’’. 
(b) REGULATIONS REQUIRED.—The Director of the Of-
fice of Management and Budget shall promulgate regula-
tions to implement the amendment made by this chapter. 
Such regulations shall include a definition of ‘‘total com-
pensation’’ that is consistent with regulations of the Securi-
ties and Exchange Commission at section 402 of part 229 
of title 17 of the Code of Federal Regulations (or any subse-
quent regulation). 
TITLE VII—MEDICAID PROVISIONS 
SEC. 7001. (a) MORATORIA ON CERTAIN MEDICAID 
REGULATIONS.— 
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•HR 2642 EAH2 
(1) EXTENSION OF CERTAIN MORATORIA IN PUB-
LIC
LAW
110–28.—Section 7002(a)(1) of the U.S. 
Troop Readiness, Veterans’ Care, Katrina Recovery, 
and Iraq Accountability Appropriations Act, 2007 
(Public Law 110–28) is amended— 
(A) by striking ‘‘prior to the date that is 1 
year after the date of enactment of this Act’’ and 
inserting ‘‘prior to April 1, 2009’’; 
(B) in subparagraph (A), by inserting after 
‘‘Federal Regulations)’’ the following: ‘‘or in the 
final regulation, relating to such parts, published 
on May 29, 2007 (72 Federal Register 29748) 
and determined by the United States District 
Court for the District of Columbia to have been 
‘improperly promulgated’, Alameda County Med-
ical Center, et al., v. Leavitt, et al., Civil Action 
No. 08-0422, Mem. at 4 (D.D.C. May 23, 2008)’’; 
and 
(C) in subparagraph (C), by inserting be-
fore the period at the end the following: ‘‘, in-
cluding the proposed regulation published on 
May 23, 2007 (72 Federal Register 28930)’’. 
(2) EXTENSION OF CERTAIN MORATORIA IN PUB-
LIC LAW 110–173.—Section 206 of the Medicare, Med-
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