To amend title 10, United States Code, to provide for a new program of educational assistance for certain reserve component members of the Armed Forces who perform active service.

SECTION 1. EDUCATIONAL ASSISTANCE FOR CERTAIN RESERVE COMPONENT MEMBERS 
              WHO PERFORM ACTIVE SERVICE.

    (a) Establishment of Program.--Part IV of subtitle E of title 10, 
United States Code, is amended by inserting after chapter 1606 the 
following new chapter:

 ``CHAPTER 1607--EDUCATIONAL ASSISTANCE FOR RESERVE COMPONENT MEMBERS 
     SUPPORTING CONTINGENCY OPERATIONS AND CERTAIN OTHER OPERATIONS

`` Sec.
``16161. Purpose.
``16162. Educational assistance program.
``16163. Eligibility for educational assistance.
``16164. Time limitation for use of entitlement.
``16165. Termination of assistance.
``16166. Administration of program.
``Sec. 16161. Purpose
    ``The purpose of this chapter is to provide educational assistance 
to members of the reserve components who have been called or ordered to 
active service in response to a war or national emergency declared by 
the President or the Congress, in recognition of the sacrifices that 
those members make in answering the call to duty.
``Sec. 16162. Educational assistance program
    ``(a) Program Establishment.-- The Secretary of each military 
department, under regulations prescribed by the Secretary of Defense, 
and the Secretary of Homeland Security with respect to the Coast Guard 
when it is not operating as a service in the Navy, shall establish and 
maintain a program as prescribed in this chapter to provide educational 
assistance to members of the Ready Reserve of the armed forces under 
the jurisdiction of the Secretary concerned.
    ``(b) Authorized Education Programs.--Educational assistance may be 
provided under this chapter for pursuit of any program of education 
that is an approved program of education for purposes of chapter 30 of 
title 38.
    ``(c) Benefit Amount.--(1) The educational assistance program 
established under subsection (a) shall provide for payment by the 
Secretary concerned, through the Secretary of Veterans Affairs, an 
educational assistance allowance to each member entitled to educational 
assistance under this chapter who is pursuing a program of education 
authorized under subsection (b).
    ``(2) The educational assistance allowance provided under this 
chapter shall be based on the applicable percent under paragraph (4) 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.
    ``(3) The educational assistance allowance provided under this 
section for a person who is undertaking a program for which a reduced 
rate is specified in chapter 30 of title 38, that rate shall be further 
adjusted by the applicable percent specified in paragraph (4).
    ``(4) The adjusted educational assistance allowance under paragraph 
(2) or (3), as applicable, shall be--
            ``(A) 40 percent in the case of a member of a reserve 
        component who performed active service for 90 consecutive days 
        but less than one continuous year;
            ``(B) 60 percent in the case of a member of a reserve 
        component who performed active service for one continuous year 
        but less than two continuous years; or
            ``(C) 80 percent in the case of a member of a reserve 
        component who performed active service for two continuous years 
        or more.
    ``(d) Maximum Months of Assistance.--(1) Subject to section 3695 of 
title 38, the maximum number of months of educational assistance that 
may be provided to any member under this chapter is 36 (or the 
equivalent thereof in part-time educational assistance).
    ``(2)(A) Notwithstanding any other provision of this chapter or 
chapter 36 of title 38, any payment of an educational assistance 
allowance described in subparagraph (B) of this paragraph shall not--
            ``(i) be charged against the entitlement of any individual 
        under this chapter; or
            ``(ii) be counted toward the aggregate period for which 
        section 3695 of title 38 limits an individual's receipt of 
        assistance.
    ``(B) The payment of the educational assistance allowance referred 
to in subparagraph (A) of this paragraph is the payment of such an 
allowance to the individual for pursuit of a course or courses under 
this chapter if the Secretary of Veterans Affairs finds that the 
individual--
            ``(i) had to discontinue such course pursuit as a result of 
        being ordered to serve on active duty under section 12301(a), 
        12301(d), 12301(g), 12302, or 12304 of this title; and
            ``(ii) failed to receive credit or training time toward 
        completion of the individual's approved educational, 
        professional, or vocational objective as a result of having to 
        discontinue, as described in clause (i), the individual's 
        course pursuit.
    ``(C) The period for which, by reason of this subsection, an 
educational assistance allowance is not charged against entitlement or 
counted toward the applicable aggregate period under section 3695 of 
title 38 shall not exceed the portion of the period of enrollment in 
the course or courses for which the individual failed to receive credit 
or with respect to which the individual lost training time, as 
determined under subparagraph (B)(ii).
``Sec. 16163. Eligibility for educational assistance
    ``(a) Eligibility.--On or after September 11, 2001, a member of a 
reserve component is entitled to educational assistance under this 
chapter if the member--
            ``(1) served on active duty in support of a contingency 
        operation for 90 consecutive days or more; or
            ``(2) in the case of a member of the Army National Guard of 
        the United States or Air National Guard of the United States, 
        performed full time National Guard duty under section 502(f) of 
        title 32 for 90 consecutive days or more when authorized by the 
        President or Secretary of Defense for the purpose of responding 
        to a national emergency declared by the President and supported 
        by Federal funds.
    ``(b) Disabled Members.--Notwithstanding the eligibility 
requirements in subsection (a), a member who was ordered to active 
service as prescribed under subsection (a)(1) or (a)(2) but is released 
from duty before completing 90 consecutive days because of an injury, 
illness or disease incurred or aggravated in the line of duty shall be 
entitled to educational assistance under this chapter at the rate 
prescribed in section 16162(b)(2)(A) of this title.
    ``(c) Written Notification.--(1) Each member who becomes entitled 
to educational assistance under subsection (a) shall be given a 
statement in writing prior to release from active service that 
summarizes the provisions of this chapter and stating clearly and 
prominently the substance of sections 16165 and 16166 of this title as 
such sections may apply to the member.
    ``(2) At the request of the Secretary of Veterans Affairs, the 
Secretary concerned shall transmit a notice of entitlement for each 
such member to that Secretary.
    ``(d) Bar From Dual Eligibility.--A member who qualifies for 
educational assistance under this chapter may not receive credit for 
such service under both the program established by chapter 30 of title 
38 and the program established by this chapter but shall make an 
irrevocable election (in such form and manner as the Secretary of 
Veterans Affairs may prescribe) as to the program to which such service 
is to be credited.
    ``(e) Bar From Duplication of Educational Assistance Allowance.--
(1) Except as provided in paragraph (2), an individual entitled to 
educational assistance under this chapter who is also eligible for 
educational assistance under chapter 1606 of this title, chapter 30, 
31, 32, or 35 of title 38, or under the Hostage Relief Act of 1980 
(Public Law 96-449; 5 U.S.C. 5561 note) may not receive assistance 
under more than one such programs and shall elect (in such form and 
manner as the Secretary concerned may prescribe) under which program 
the member elects to receive educational assistance.
    ``(2) The restriction on duplication of educational assistance 
under paragraph (1) does not apply to the entitlement of educational 
assistance under section 16131(i) of this title.
``Sec. 16164. Time limitation for use of entitlement
    ``(a) Duration of Entitlement.--Except as provided in subsection 
(b), a member remains entitled to educational assistance under this 
chapter while serving--
            ``(1) in the Selected Reserve of the Ready Reserve, in the 
        case of a member was called or ordered to active service while 
        serving in the Selected Reserve; or
            ``(2) in the Ready Reserve, in the case of a member was 
        ordered to active duty while serving in the Ready Reserve 
        (other than the Selected Reserve).
    ``(b) Duration of Entitlement for Disabled Members.--(1) In the 
case of a person who is separated from the Ready Reserve because of a 
disability which was not the result of the individual's own willful 
misconduct incurred on or after the date on which such person became 
entitled to educational assistance under this chapter, such person's 
entitlement to educational assistance expires at the end of the 10-year 
period beginning on the date on which such person became entitled to 
such assistance.
    ``(2) The provisions of subsections (d) and (f) of section 3031 of 
title 38 shall apply to the period of entitlement prescribed by 
paragraph (1).
``Sec. 16165. Termination of assistance
    ``Educational assistance may not be provided under this chapter, or 
if being provided under this chapter, shall be terminated--
            ``(1) if the member is receiving financial assistance under 
        section 2107 of this title as a member of the Senior Reserve 
        Officers' Training Corps program; or
            ``(2) when the member separates from the Ready Reserve, as 
        provided under section 16164(a)(1) or section 16164(a)(2), as 
        applicable, of this title.
``Sec. 16166. Administration of program
    ``(a) Administration.--Educational assistance under this chapter 
shall be provided through the Department of Veterans Affairs, under 
agreements to be entered into by the Secretary of Defense, and by the 
Secretary of Homeland Security, with the Secretary of Veterans Affairs. 
Such agreements shall include administrative procedures to ensure the 
prompt and timely transfer of funds from the Secretary concerned to the 
Department of Veterans Affairs for the making of payments under this 
chapter.
    ``(b) Program Management.--Except as otherwise provided in this 
chapter, the provisions of sections 503, 511, 3470, 3471, 3474, 3476, 
3482(g), 3483, and 3485 of title 38 and the provisions of subchapters I 
and II of chapter 36 of such title (with the exception of sections 
3686(a), 3687, and 3692) shall be applicable to the provision of 
educational assistance under this chapter. The term `eligible veteran' 
and the term `person', as used in those provisions, shall be deemed for 
the purpose of the application of those provisions to this chapter to 
refer to a person eligible for educational assistance under this 
chapter.
    ``(c) Flight Training.--The Secretary of Veterans Affairs may 
approve the pursuit of flight training (in addition to a course of 
flight training that may be approved under section 3680A(b) of title 
38) by an individual entitled to educational assistance under this 
chapter if--
            ``(1) such training is generally accepted as necessary for 
        the attainment of a recognized vocational objective in the 
        field of aviation;
            ``(2) the individual possesses a valid private pilot 
        certificate and meets, on the day the member begins a course of 
        flight training, the medical requirements necessary for a 
        commercial pilot certificate; and
            ``(3) the flight school courses meet Federal Aviation 
        Administration standards for such courses and are approved by 
        the Federal Aviation Administration and the State approving 
        agency.
    ``(d) Trust Fund.--Amounts for payments for benefits under this 
chapter shall be derived from the Department of Defense Education 
Benefits Fund under section 2006 of this title.''.
    (b) Conforming Amendments.--(1) Section 2006(b) of such title is 
amended--
            (A) in paragraph (1), by striking ``chapter 1606'' and 
        inserting ``chapters 1606 and 1607, including funds provided by 
        the Secretary of Homeland Security for education liabilities 
        for the Coast Guard when it is not operating as a service in 
        the Department of the Navy''; and
            (B) in paragraph (2)(C), by striking ``for educational 
        assistance under chapter 1606'' and inserting ``(including 
        funds from the Department in which the Coast Guard is 
        operating) for educational assistance under chapters 1606 and 
        1607''.
    (2) Section 3695(a)(5) of title 38, United States Code, is amended 
by inserting ``1607,'' after ``1606,''.
    (c) Clerical Amendment.--The tables of chapters at the beginning of 
subtitle E of title 10, United States Code, and at the beginning of 
part IV of such subtitle, are amended by inserting after the item 
relating to chapter 1606 the following new item:

``1607. Educational Assistance for Reserve Component Members   16161''.
                            Supporting Contingency 
                            Operations and Certain Other 
                            Operations.

Summary: Requires the Secretary of each military department, and the Secretary of Homeland Security with respect to the Coast Guard when it is not operating as a service in the Navy, to establish a program as prescribed in this Act to provide educational assistance to members of the Ready Reserve of the Armed Forces under the jurisdiction of the Secretary concerned.

Makes eligible for such benefits on or after September 11, 2001, members of Reserve components who: (1) served on active duty in support of contingency operations for at least 90 consecutive days; or (2) in the case of an Army or Air National Guard member, performed full time duty for at least 90 consecutive days for the purpose of responding to a national emergency declared by the President and supported by Federal funds. Creates an exception to the 90-day requirement for members released from duty because of injury, illness, or disease incurred or aggravated in the line of duty.

States that members remain entitled to such educational assistance if ordered to active duty while serving in the Selected Reserve or the Ready Reserve. Terminates educational assistance for disabled members 10 years from the date of entitlement.

Requires educational assistance under this Act to be provided through the Department of Veterans Affairs.