An Act to provide readjustment assistance to veterans who serve in the Armed Forces during the induction period
PL 89-358 (S.9), enacted 03/03/1966

12 
PUBLIC LAW 89-358-MAR. 3, 1966 
[80 
STAT. 
Public Law 89-358 
March 3, 1966 
AN ACT 
[^- 9] 
To provide readjustment assistance to veterans who serve in the Armed Forces 
during the induction period. 
Veterans' Re-
adjustment Bene-
fits Act of 1966. 
72 Stat. 1170. 
38 u s e 1501 
et seq-
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America vri Congress 
assembled. 
SHORT TITLE 
SECTION 1. This Act may be cited as the "Veterans* Readjustment 
Benefits Act of 1966". 
EDUCATIONAL BENEFITS 
SEC. 2. Part III of title 38, United States Code, is amended by 
inserting immediately after chapter 31 thereof the following new 
chapter: 
"CHAPTER 34—VETERANS* EDUCATIONAL ASSISTANCE 
"SUBCHAPTER I—PURPOSE—DEFINITIONS 
"Sec. 
•'1651. Purpose. 
•'1652. Definitions. 
"SUBCHAPTER II—ELIGIBILITY AND ENTITLEMENT 
'1661. Eligibility; entitlement; duration. 
'1662. Time limitations for completing a program of education. 
•'1663. Educational and vocational counseling. 
"SUBCHAPTER III—ENROLLMENT 
•'1670. Selection of program. 
•'1671. Applications; approval. 
"1672. Change of program. 
"1673. Disapproval of enrollment in certain courses. 
"1674. Discontinuance for unsatisfactory conduct or progress. 
•'1675. Period of operation for api>roval. 
•'1676. Education outside the United States. 
"SUBCHAPTER IV—PAYMENTS TO ELIGIBLE VETERANS 
1681. Educational assistance allowance. 
•'1682. Computation of educational assistance allowances. 
"1683. Measurement of courses. 
"1684. Overcharges by educational institutions. 
•'1685. Approval of courses. 
. 
•1686. Discontinuance of allowances. 
"Subchapter I—Purpose—Definitions 
"§1651. Purpose 
"The Congress of the United States hereby declares that the educa-
tion program created by this chapter is for the purpose of (1) enhanc-
ing and making more attractive service in tlie Armed Forces of the 
United States, (2) extending the l)enefits of a highei" education to 
qualified and deserving young persons wiio might uot otherwise be 
able to afford such an education, (3) providing vocational readjust-
ment and restoring lost educational opportunities to those service 
men and women whose careers have been interrupted or impeded by 
7 7 Stat. 13;; 
80 STAT.] 
PUBLIC LAW 89-358-MAR. 3, 1966 
13 
reason of active duty after January 31, 1955, and (4) aiding such 
persons in attaining the vocational and educational status which they 
might normally have aspired to and obtained had they not serv^ 
their country. 
<
*
§ 1652. Definitions 
"For the purposes of this chapter— 
"(a) (1) The term 'eligible veteran' means any veteran who (A) 
served on active duty for a period of more than 180 days any part of 
which occurred after January 31, 1955, and who was discharged or 
released therefrom under conditions other than dishonorable or (B) 
was discharged or released from active duty after such date for a 
service-connected disability. 
"(2) The requirement of discharge or release, prescribed in para-
graph (1)(A), shall be waived in the case of any individual who 
served at least two years in an active-duty status for so long as he 
continues on active duty without a break therein. 
"(3) For purposes of paragraph (1) (A) and section 1661(a), the 
term 'active duty' does not include any period during which an 
individual (A) was assigned full time by the Armed Forces to a 
civilian institution for a course of education which was substantially 
the same as established courses offered to civilians, (B) served as a 
cadet or midshipman at one of the service academies, or (C) served 
under the provisions of section 511 (d) of title 10 pursuant to an enlist-
ment in the Army National Guard or the Air National Guard or as a 
Reserve for service in the Army Reserve, Naval Reserve, Air Force 
Reserve, Marine Corps Reserve, or Coast Guard Reserve. 
"(b) The term 'program of education' means any curriculum or any 
combination of unit courses or subjects pursued at an educational 
institution which is generally accepted as necessary to fulfill require-
ments for the attainment of a predetermined and identified educational, 
professional, or vocational objective. 
"(c) The term 'educational institution' means any public or private 
secondary school, vocational school, correspondence school, business 
school, junior college, teachers' college, college, normal school, profes-
sional school, university, or scientific or technical institution, or any 
other institution if it furnishes education at the secondary school level 
or above. 
"(d) The term 'dependent' means— 
"(1) a child of an eligible veteran; 
"(2) a dependent parent of an eligible veteran; and 
"(3) the wife of an eligible veteran. 
^'Subchapter II—Eligibility and Entitlement 
''§1661. Eligibility; entitlement; duration 
"Entitlement 
"(a) Except as provided in subsection (b), each eligible veteran 
shall be entitled to educational assistance under this chapter for a 
period of one month (or to the equivalent thereof in part-time educa-
tional assistance) for each month or fraction thereof of his service 
on active duty after January 31, 1955. 
65-300 0-67—4 
38 
Ed., use 1952 
ch. 12A. 
38 u s e 
note 
70 Stat. 
38 u s e 
e( seq. 
1601 
411,. 
1701 
M 
PUBLIC LAW 89-358-MAR. 3, 1966 
[80 STAT. 
"Entitlement Limitations 
''i-- 
s., 
"(b) Except as provided in subsection (c), in no event shall an 
eligible veteran receive educational assistance under this chapter for 
a period which, when combined with education and training received 
under any or all of the laws listed below, will exceed thirty-six 
months— 
" (1) parts VII or VIII, Veterans Regulation Numbered 1(a), 
as amended; 
"(2) title I I of the Veterans' Readjustment Assistance Act 
of 1052; 
"(3) the War Orphans' Educational Assistance Act of 1956; 
"(4) chapters 31, 33, and 35 of this title. 
"(c) Whenever the period of entitlement under this section of an 
eligible veteran who is enrolled in an educational institution regularly 
operated on the quarter or semester system ends during a quarter or 
semester, such period shall be extended to the termination of such 
unexpired quarter or semester. 
In educational institutions not op-
erated on tne quarter or semester system, whenever the period of 
eligibility ends after a major portion of the course is completed such 
period shall be extended to the end of the course or for twelve weeks, 
whichever is the lesser period. 
"(d) If an eligible veteran is entitled to educational assistance 
under this chapter and also to vocational rehabilitation under chapter 
31 of this title, he must, if he wants either, elect w'hether he will receive 
educational assistance or vocational rehabilitation. 
If an eligible 
veteran is entitled to educational assistance under this chapter and 
is not entitled to such vocational rehabilitation, but after beginning 
his program of education becomes entitled (as determined by the 
Administrator) to such vocational rehabilitation, he must, if he wants 
either, elect whether to pontinue to receive educational assistance or 
whether to receive such vocational rehabilitation. 
If he elects to 
receive vocational rehabilitation, the program of education under this 
chapter shall be utilized to the fullest extent practicable in deter-
minmg the character and duration of vocational rehabilitation to be 
fumi^ed him. 
"§ 1662. Time limitations for completing a program of education 
"Delimiting Period for Completion 
"(a) No educational assistance shall be afforded an eligible veteran 
under this chapter beyond the date eight years after his last discharge 
or release from active duty after January 31, 1955, 
"Correction of Discharge 
"(b) In the case of any eligible veteran who has been prevented, 
as determined by the Administrator, from completing a program of 
education mider this chapter within the period prescribed by subsection 
(a), because lie had not met the nature of discharge requirements of 
this chapter before a change, correction, or modification of a discharge 
76 Stat. 509. 
^^j. dismissal made pursuant to section 1553 of title 10, the correction 
of the military records of the proper service department under section 
7
0
A Stat. 116. 
1552 of title 10, or other corrective action by competent authority, then 
the 8-year delimiting period shall run from the date his discharge or 
dismissal was changed, corrected, or modified. 
r 
80 STAT.] 
PUBLIC LAW 89-358-MAR. 3, 1966 
15 
"Savings Clause 
"(c) In the case of any eligible veteran v;ho was discharged or 
released from active duty before the date for which an educational 
assistance allowance is first payable under tliis chapter, the 8-year 
delimiting period shall run from such date, if it is later than the date 
which otherwise would be applicable. 
"§1663. Educational and vocational counseling 
"The Administrator may arrange for educational and vocational 
counseling for veterans eligible for educational assistance under this 
chapter. At such intervals as he deems necessary, he shall make avail-
able information respecting the need for general education and for 
trained personnel in the various crafts, trades, and professions. 
Facilities of other Federal agencies collecting such information shall 
be utilized to the extent he deems practicable. 
"Subchapter III—Enrollment 
"§1670. Selection of program 
"Subject to the provisions of this chapter, each eligible veteran may 
select a program of education to assist him in attaining an educational, 
professional, or vocational objective at any educational institution 
(approved in accordance with chapter 36 of this title) selected by him, 
^°^^- p- 20. 
which will accept and retain him as a student or trainee in any field 
or branch of knowledge which such institution finds him qualified to 
undertake or pursue. 
"§ 1671. Applications; approval 
"Any eligible veteran who desires to initiate a program of education 
under this chapter shall submit an application to the Administrator 
which shall be in such form, and contain such information, as the 
Administrator shall prescribe. The Administrator shall approve such 
application unless he finds that such veteran is not eligible for or 
entitled to the educational assistance applied for, or that his program 
of education fails to meet any of the requirements of this chapter, 
or that he is already qualified. 
The Administrator shall notify the 
eligible veteran of the approval or disapproval of his application. 
"§ 1672. Change of program 
"(a) Except as provided in subsection (b), each eligible veteran 
(except an eligible veteran whose program has been interrupted or 
discontinued due to his own misconduct, his own neglect, or his own 
lack of application) may make not more than one change of program 
of education. 
"(b) The Administrator may approve one additional change (or 
an initial change in the case of a veteran not eligible to make a change 
under subsection (a)) in program if he finds that— 
"(1) the program of education which the eligible veteran pro-
poses to pursue is suitable to his aptitudes, interests, and abilities; 
and 
" (2) in any instance where the eligible veteran has interrupted, 
or failed to progress in, his program due to his own misconduct, 
his own neglect, or his own lack of application, there exists a 
reasonable likelihood with respect to the program which the 
eligible veteran proposes to pursue that there will not be a recur-
rence of such an interruption or failure to progress. 
16 
PUBLIC LAW 89-358-MAR. 3, 1966 
[80 STAT. 
"(c) As used in this section the term 'change of program of educa-
tion' shall not be deemed to include a change from the pursuit of one 
program to pursuit of another where the first program is prerequisite 
to, or generally required for, entrance into pursuit of the second. 
"§ 1673. Disapproval of enrollment in certain courses 
"(a) The Administrator shall not apj)rove the enrollment of an 
eligible veteran in any type of course which the Administrator finds 
to be avocational or recreational in character unless the eligible veteran 
submits justification showing that the course will be of bona fide use 
in the pursuit of his present or contemplated business or occupation. 
"(b) The Administrator shall not approve the enrollment of an 
eligible veteran in any course of flight training other than one given 
by an educational institution of higher learning for credit toward 
a standard college degree the eligible veteran is seeking. 
"(c) The Administrator shall not apj)rove the enrollment of an 
eligible veteran in any course of apprentice or other training on the 
job, any course of institutional on-farm training, or any course to be 
pursued by open circuit television (except as herein provided) or 
radio. The Administrator may approve the enrollment of an eligible 
veteran in a course, to be pursued in residence, leading to a standard 
college degree which includes, as an integral part thereof, subjects 
offered through the medium of open circuit television, if the major 
portion of the course requires conventional classroom or laboratory 
attendance. 
"(d) The Administrator shall not approve the enrollment of any 
eligible veteran, not already enrolled, in any nonaccredited course 
below the college level offered by a proprietary profit or proprietary 
nonprofit educational institution for any period during which the 
Administrator finds that more than 85 per centum of the students 
enrolled in the course are having all or part of their tuition, fees, or 
other charges paid to or for them by the educational institution or 
the Veterans' Administration under this chapter or chapter 31 or 35 
of this title. 
"§1674. Discontinuance for unsatisfactory conduct or progress 
"The Administrator shall discontinue the educational assistance 
allowance of an eligible veteran if, at any time, the Administrator finds 
that according to the regularly prescribed standards and practices of 
the educational institution, his conduct or progress is unsatisfactory. 
The Administrator may renew the payment of the educational assist-
ance allowance only if he finds that— 
"(1) the cause of the unsatisfactory conduct or progress of the 
eligible veteran has been removed; and 
"(2) the program which the eligible veteran now proposes to 
pursue (whether the same or revised) is suitable to his aptitudes, 
interests, and abilities. 
"§1675. Period of operation for approval 
"(a) The Administrator shall not approve the enrollment of an 
eligible veteran in any course offered by an educational institution 
when such course has been in operation for less than two years. 
"(b) Subsection (a) shall not apply to— 
" (1) any course to be jjursued in a public or other tax-supported 
educational institution; 
"(2) any course which is offered by an educational institution 
which has been in operation for more than two years, if such 
course is similar in character to the instruction previously given 
by such institution; 
80 STAT.] 
PUBLIC LAW 89-358-MAR. 3, 1966 
17 
"(3) any course wliich has been olt'ered by an institution for a 
period of nioi-e than two years, notwithstanding the institution 
has moved to another location within the same general locality; 
or 
"(4) any course which is offered by a nonprofit educational 
institution of college level and which is recognized for credit 
toward a standard college degrep. 
"§1676. Education outside the United States 
"An eligible veteran may not pursue a program of education at an 
educational institution which is not located in a State, unless such 
jirogram is pursued at an approved educational institution of higher 
learning. The Administrator in his discretion may deny or dis-
continue the educational assistance under this chapter of any veteran 
in a foreign educational institution if he finds that such enrollment 
is not foi' the best interest of the veteran or the Government. 
"Subchapter IV—Payments to Eligible Veterans 
"§ 1681. Educational assistance allowance 
"(a) The Administrator shall pay to each eligible veteran who is 
])ursuing a program of education under this chapter an educational 
rissistance allowance to meet, in part, the expenses of his subsistence, 
tuition, fees, supplies, books, equipment, and other educational costs. 
"(b) The educational assistance allowance of an eligible veteran 
shall be paid, as provided in section 1682 of this title, only for the 
period of his enrollment as approved by the Administrator, but no 
allowance shall be paid— 
" (1) to any veteran enrolled in a course which leads to a stand-
ard college degree for any period w^hen such veteran is not pur-
suing his course in accordance with the regularly established 
policies and regulations of the educational institution and the 
requirements of this chapter, or of chapter 36; 
Post. p. 20. 
"(2) to any veteran enrolled in a course which does not lead 
to a standard college degree for any day of absence in excess of 
thirty days in a twelve-month period, not counting as absences 
weekends or legal holida;^s established by Federal or State law 
during which the institution is not regularly in session; or 
"(3) to any veteran pursuing his program exclusively by 
correspondence for any period during which no lessons were 
serviced by the institution. 
"(c) The Administrator may, pursuant to such regulations as he 
may prescribe, determine enrollment in, pursuit of, and attendance 
at, any program of education or course by an eligible veteran for 
any period for which he receives an educational assistance allowance 
under this chapter for pursuing such program or course. 
"(d) No educational assistance allowance shall be paid to an eligible 
veteran enrolled in a course in an educational institution which does 
not lead to a standard college degree for any period until the Admin-
istrator shall have received— 
"(1) from the eligible veteran a certification as to his actual 
attendance during such period or where the program is pursued 
by correspondence a certificate as to the number of lessons 
actually completed by the veteran and serviced by the institution; 
and . 
"(2) from the educational institution, a certification, or an 
endorsement on the veteran's certificate, that such veteran was 
enrolled in and pursuing a course of education during such period 
18 
PUBLIC LAW 89-358-MAR. 3, 1966 
[80 STAT. 
and, in the case of an institution furnishing education to a veteran 
exclusively by correspondence, a certificate, or an endorsement on 
the veteran's certificate, as to the number of lessons completed by 
the veteran and serviced by the institution. 
"(e) Educational assistance allowances shall be paid as soon as 
practicable after the Administrator is assured of the veteran's enroll-
ment in and pursuit of the program of education for the period for 
which such allowance is to be paid. 
'^§1682. Computation of educational assistance allowances 
"(a)(1) Except as provided in subsection (b) or (c)(1), while 
pursuing a program of education under this chapter of half-time or 
more, each eligible veteran shall be paid the monthly educational 
assistance allowance set forth in column II, III, or IV (w^hichever is 
applicable as determined by the veteran's dependency status) opposite 
the applicable type of program as shown in column I : 
"Column I 
Type of program 
Institutional: 
Fulltime 
. 
Three quarter time 
Half time 
Cooperative 
_ 
Column II 
No 
dependents 
$100 
75 
50 
80 
Column III 
One 
dependent 
$125 
95 
65 
100 
Column IV 
Two or more 
dependents 
$150 
115 
75 
120 
"(2) A 'cooperative' program means a full-time program of educa-
tion which consists of institutional courses and alternate phases of 
training in a business or industrial establishment with the training 
in the business or industrial establishment being strictly supplemental 
to the institutional portion. 
"(b) The educational assistance allowance of an individual pursu-
ing a program of education— 
"(1) while on active duty, or 
"(2) on less than a half-time basis, 
shall be computed at the rate of (A) the established charges for tuition 
and fees w^hich the institution requires similarly circumstanced non-
veterans enrolled in the same program to pay, or (B) $100 per month 
for a full-time course, whichever is the lesser. 
" (c) (1) The educational assistance allowance of an eligible veteran 
pursuing a. program of education exclusively by correspondence shall 
be computed on the basis of the established charge which the institution 
requires nonveterans to pay for the course or courses pursued by the 
eligible veteran. 
Such allowance shall be paid quarterly on a pro 
rata basis for the lessons completed by the veteran and serviced by 
the institution, as certified by the institution. 
"(2) In the case of any eligible veteran who is pursuing any pro-
gram of education exclusively by correspondence, one-fourth of the 
elapsed time in following such program of education shall be charged 
against the veteran's period of entitlement. 
"§1683. Measurement of courses 
"(a) For the purposes of this chapter— 
"(1) an institutional trade or technical course offered on a 
clock-hour basis below the college level involving shop practice 
as an integral part thereof, shall be considered a full-time course 
80 STAT.] 
PUBLIC LAW 89-358-MAR. 3, 1966 
19 
when a iiiiiiiimnn of thirty hours per Ave«k of attendance is 
required with no more than two and one-half houi-s of rest periods 
per week allowed; 
" (2) an institutional course offered on a clock-hour basis below 
the college lev^el in which theoretical or classroom instruction 
predominates shall be considered a full-time course when a mini-
mum of twenty-five hours per week net of instruction (which 
may include customary intervals not to exceed ten minutes between 
hours of instruction) is required; and 
"(3) an institutional undergraduate course offered by a college 
or university on a quarter- or semester-hour basis for which credit 
is granted toward a standard college degree shall be considered a 
full-time course when a minimum of fourteen semester hours 
or its equivalent is required. 
"(b) The Administrator shall define part-time training in the case 
of the types of courses referred to in subsection (a), and shall define 
full-time and part-time training in the case of all other types of 
courses pursued under this chapter. 
*
*
§ 1684. Overcharges by educational institutions 
"(a) If the Administrator finds that an educational institution 
has charged or received from any eligible veteran pursuing a pro-
gram of education under this chapter any amount for any course 
in excess of the charges for tuition and fees which such institution 
requires similarly circumstanced nonveteran students, who are en-
rolled in the same course to pay, he may disapprove such educational 
institution for the enrollment of any eligible veteran not already 
enrolled therein under this chapter and any eligible veteran or person 
not already enrolled therein under chapter 31 or 35 of this title. 
"(b) Any educational institution which has been disapproved under 
section 1734 of this title shall be deemed to be disapproved for the 
enrollment under this chapter of any eligible veteran not already 
enrolled therein. 
"§ 1685. Approval of courses 
"An eligible veteran shall receive the benefits of this chapter while 
iMirolled in a course of education offered by an educational institution 
only if such course is approved in accordance with the provisions of 
subchapter I of chapter 36 of this title. 
Post, p. 20. 
"§ 1686. Discontinuance of allowances 
"The Administrator may discontinue the educational assistance 
allowance of any eligible veteran if he finds that the program of 
' »
•
-
education or any course in which the eligible veteran is enrolled fails 
to meet any of the requirements of this chapter or chapter 36, or if 
he finds that the educational institution offering such program or 
course has violated any provision of this chapter or chapter 36, or 
fails to meet any of their requirements." 
SEC. 3. (a) Chapter 35 of title 38 of the United States Code is 
'^ ^'^'- ''^''• 
amended by— 
(1) amendhig section 1761 thereof to read as follows: 
*'§ 1761. Authority and duties of Administrator 
"(a) The Administrator may provide the educational and voca-
tional counseling required under section 1720 of this title, and may 
provide or require additional counseling if he deems it to be necessary 
to accom])lish the i)niposes of this chapter. 
20 
PUBLIC LAW 89-358-MAR. 3, 1966 
[80 STAT. 
"(b) Where any provision of this chapter authorizes or requires 
any function, power, or duty to be exercised by a State, or by any 
oflS.cer or agency thereof, such function, power, or duty shall, with 
respect to the Kepublic of the Philippines, be exercised by the Admin-
istrator." ; 
(2) deleting in section 1762, " ( a ) " and subsection (b) in its 
entirety; 
(3) deleting sections 1726, 1763, 1764, 1765, 1766, 1767, and 
1768; 
(4) deleting the following heading, immediately preceding sec-
Pof*^!, R
f
i
^
i 
^^^^ l^^l' "Subchapter VII—State Approving Agencies", and 
substituting therefor: 
Post, p. 861. 
"CHAPTER 36.—ADMINISTRATION OF EDUCATIONAL 
BENEFITS 
" S U B C H A P T E R I—STATE APPROVING AGENCIES 
"Sec. 
"1770. Scope of approval. 
"1771. Designation. 
"1772. Approval of courses. 
"1773. Cooperation. 
"1774. Reimbursement of expenses. 
"1775. Approval of accredited courses. 
"1776. Approval of nonaccredited courses. 
"1777. Notice of approval of courses. 
"1778. Disapproval of courses. 
" S U B C H A P T E R II—MISCELLANEOUS PROVISIONS 
"1781. Nonduplication of benefits. 
"1782. Control by agencies of the United States. 
"1783. Conflicting interests. 
"1784. Reports by institutions. 
"1785. Overpayments to eligible persons or veterans. 
"1786. Examination of records. 
"1787. False or misleading statements. 
"1788. Advisory committee. 
"1789. Institutions listed by Attorney General. 
"1790. Use of other Federal agencies. 
"Subchapter I—State Approving Agencies"; 
(5) inserting a new section 1770 to read as follows: 
"§1770. Scope of approval 
"(a) A course approved under and for the purposes of this chapter 
shall be deemed approved for the purposes of chapters 34 and 35 
of this title. 
"(b) Any course approved under chapter 33 of this title, prior to 
February 1, 1965, under subchapter VII of chapter 35 of this title, 
prior to the date of enactment of this chapter, and not disapproved 
Ante, p. 19. 
undcr section 1686, section 1656 (as in effect prior to February 1, 
1965), or section 1778 of this title, shall be deemed approved for the 
purposes of this chapter."; 
(6) striking out in section 1771(a), "this chapter after the 
date for the expiration of all education and training provided 
in chapter 33 of this title. 
Such agency may be the agency 
designated or created in accordance with section 1641 of this 
title", and substituting therefor "chapters 34 and 35 of this title"; 
(7) striking out in the first sentence of section 1772(a) the 
phrase "under subchapter V of this chapter" and inserting in lieu 
thereof "under subchapter V of chapter 35 of this title"; and 
Ante, p. 12. 
80 STAT.] 
PUBLIC L
A
W 89-358-MAR. 3, 1966 
21 
striking out the phrase "this chapter" the first twO' times it appears 
in the first sentence of such section 1772(a), and each time such 
phrase appears in the second, third and fourth sentences of such 
section 1772(a), and each time such phrase appears in section 
1772(b) and in sections 1773 and 1774, and insertmg in lieu thereof 
"chapters 34 and 35"; 
(8) striking out in sections 1772, 1774, and 1775, each time it 
appears, the phrase "eligible person" and substituting therefor 
"eligible person or veteran"; 
(9) striking out in section 1776 "1653 or"; 
(10) deleting from the analysis appearing at the head of chapter 
35 of such title: 
"1726. Institutions listed by the Attorney General." 
and 
"1763. Control by agencies of the United States. 
"1764. Conflicting interests. 
"1765. Reports by institutions. 
"1766. Overpayments to eligible persons. 
"1767. Examination of records. 
"1768. False or misleading statements, 
"SUBCHAPTEE VII—STATE APPROVING AGENCIES 
"1771. Designation. 
"1772. Approval of ccturses. 
"1773. Cooperation. 
"1774. Reimbursement of expenses. 
"1775. Approval of accredited courses. 
"1776. Approval of nonaccredited courses. 
"1777. Notice of approval of courses. 
"1778. Disapproval of courses." 
(11) striking out the term "eligible persons" in sections 1773 
(a) and 1774 and inserting in lieu thereof "eligible persons or 
veterans". 
(b) Title 38 of the United States Code is further amended by add-
ing immediately following section 1778, the following new subchapter: 
"Subchapter II—Miscellaneous Provisions 
**§1781. Nonduplication of benefits 
"No educational assistance allowance or special training allowance 
shall be paid on behalf of any eligible person or veteran under chapter 
34 or 35 of this title for any period during which such person or ^"'^' P- ^^• 
veteran is enrolled in and pursuing a program of education or course 
paid for by the United States under any provision of law other than 
such chapters, where the payment of an allowance would constitute 
a duplication of benefits paid from the Federal Treasury to the eligible 
person or veteran or to his parent or guardian in his behalf. 
"§1782. Control by agencies of the United States 
"No department, agency, or officer of the United States, in carrying 
out this chapter, shall exercise any supervision or control, whatsoever, 
over any State approving agency, or State educational agency, or 
any educational institution. Nothing in this section shall be deemed 
to prevent any department, agency, or officer of the United States 
from exercising any supervision or control which such department, 
22 
PUBLIC LAW 89-358-MAR. 3, 1966 
[80 STAT. 
Ante, p. 12. 
agency, or officer is authorized by law to exercise over any Federal 
educational institution or to prevent the furnishing of education 
imder chapter 34 or 35 of this title in any institution over which 
supervision or control is exercised by such other department, agency, 
or officer under authority of law. 
"§ 1783. Conflicting interests 
"(a) Every officer or employee of the Veterans' Administration 
who has, while such an officer or employee, owned any interest in, or 
received any wages, salary, dividends, profits, gratuities, or services 
from, any educational institution operated for profit in which an 
eligible person or veteran was pursuing a program of education or 
course under chapter 34 or 35 shall be immediately dismissed from 
his office or employment. 
"(b) If the Administrator finds that any person who is an officer 
or employee of a State approving agency has, while he was such an 
officer or employee, owned any interest in, or received any wages, 
salary, dividends, profits, gratuities, or services from, an educational 
institution operated for profit in which an eligible person or veteran 
was pursuing a program of education or course under chapter 34 
or 35 of this title, he shall discontinue making payments under section 
1774 of this title to such State approving agency unless such agency 
shall, without delay, take such steps as may be necessary to terminate 
the employment of such person and such payments shall not be 
resumed while such person is an officer or employee of the State 
approving agency, or State department of veterans' affairs or State 
department of education. 
" (c) A State approving agency shall not approve any course offered 
by an educational institution operated for profit, and, if any such 
course has been approved, shall disapprove each such course, if it finds 
that any officer or employee of the Veterans' Administration or the 
State approving agency owns an interest in, or receives any wages, 
salary, dividends, profits, gratuities, or services from, such institution. 
"(d) The Admmistrator may, after reasonable notice and public 
hearings, waive in writing the application of this section in the case of 
any officer or employee of the Veterans' Administration or of a State 
approving agency, if he finds that no detriment will result to the 
United States or to eligible persons or veterans by reasons of such 
interest or connection of such officer or employee. 
"§ 1784. Reports by institutions 
"Educational institutions shall, without delay, report to the Admin-
istrator in the form prescribed by him, the enrollment, interruption, 
and termination of the education of each eligible person or veteran 
enrolled therein under chapter 34 or 35. 
"§ 1785. Overpayments to eligible persons or veterans 
"Whenever the Administrator finds that an overpayment has been 
made to an eligible person or veteran as the result of (1) the willful 
or negligent failure of an educational institution to report, as required 
by chapter 34 or 35 of this title and applicable regulations, to the 
Veterans' Administration excessive absences from a course, or discon-
tinuance or interruption of a course by the eligible person or veteran, 
or (2) false certification by an educational institution, the amount of 
such overpayment shall constitute a liability of such institution, and 
may be recovered in the same manner as any other debt due the United 
States. Any amount so collected shall be reimbursed if the overpay-
ment is recovered from the eligible person or veteran. This section 
shall not preclude the imposition of any civil or criminal liability 
under this or any other law. 
Ante, p. 12. 
seq. 
80 STAT.] 
PUBLIC LAW 89-358-MAR. 3, 1966 
23 
"§1786. Examination of records 
"The records and accounts of educational institutions pertaining 
to eligible persons or veterans who received education under chapter 
34 or 35 of this title shall be available for examination by duly author-
ized representatives of the Government. 
"§ 1787. False or misleading statements 
"Whenever the Administrator finds that an educational institution 
has willfully submitted a false or misleading claim, or that a person 
or veteran, with the complicity of an educational institution, has sub-
mitted such a claim, he shall make a complete report of the facts of 
the case to the appropriate State approving agency and, where deemed 
advisable, to the Attorney General of the United States for appro-
priate action. 
"§1788. Advisory committee 
"There shall be an advisory committee formed by the Administrator 
which shall be composed of persons who are eminent in their respective 
fields of education, labor^ and management, and of representatives 
of the various types of mstitutions and establishments furnishing 
vocational rehabilitation under chapter 31 of this title or education 
A* "^^ ^^°^ ^' 
to eligible persons or veterans enrolled under chapter 34 or 35 of this 
title. 
The Commissioner of Education and the Administrator, Man-
power Administration, Department of Labor, shall be ex officio mem-
Ders of the advisory committee. 
The Administrator shall advise and 
consult with the committee from time to time with respect to the 
administration of this chapter and chapters 31, 34, and 35 of this title, 
and the committee may make such reports and recommendations as 
it deems desirable to the Administrator and to the Congress. 
"§ 1789. Institutions listed by Attorney General 
"The Administrator shall not approve the enrollment of, or pay-
ment of an additional assistance allowance to, any eligible veteran 
or eligible person under chapter 34 or 35 of this title in any course 
in an educational institution while it is listed by the Attorney General 
under section 12 of Executive Order 10450. 
"§ 1790. Use of other Federal agencies 
"In carrying out his functions under this chapter or chapter 34 
or 35 of this title, the Administrator may utilize the facilities and 
services of any other Federal department or agency. 
Any such utili-
zation shall be pursuant to proper agreement with the Federal depart-
ment or agenc;^ concerned; and payment to cover the cost thereof 
shall be made either in advance or by way of reimbursement, as may 
be provided in such agreement." 
SEC. 4. (a) Chapter 33 of title 38, United States Code, is hereby 
^°^^^" conflict. 
f ^ 
Repeal of cer-
repeaieCl, 
tain provisions. 
(b) Nothing in this Act or any amendment or repeal made by 
38 use leoi-
it, shall affect any right or liability (civil or criminal) which matured ^^^^' 
under chapter 33 of title 38 before the date of enactment of this Act: 
and all offenses committed, and all penalties and forfeitures incurred, 
under any provision of law amended or repealed by this Act, may be 
punished or recovered, as the case may be, in the same manner and 
with the same effect as if such amendments or repeals had not been 
made. 
(c) The analyses of title 38, United States Code, and of part III 
thereof, are both amended by (1) striking out 
".33. Ednoation of Korean (\>uflict Veterans 
1601'"; 
18 F.R. 2489. 
5 u s e 631 note. 
24 
PUBLIC LAW 89-358-MAR. 3, 1966 
[80 STAT. 
(2) inserting in lieu thereof5 
"34. Veterans' Educational Assistance 
1650"; 
and (3) inserting immediately after 
••.35. War Orphans' Kdticational Assistance 
1701" 
the following: 
",36. Administration of Educational Benefits 
1770". 
72 Stat. 1106. 
((J) Section 101 of such title 38, United States Code, is amended 
by adding the following sentence to paragraph (20) thereof: "For 
the purpose of section 903 and chapters 34 and 35 of this title, such 
term also includes the Canal Zone." 
(e) Section 102(a)(2) of such title 38 is amended by striking 
out "Except for the purposes of chapter 33 of this title, dependency" 
and inserting in lieu thereof "Dependency". 
(f) Section 102(b) of such title 38 is amended by striking out 
"(except chapters 19 and 33)", and inserting in lieu thereof, "(except 
chapter 19)". 
(g) Section 111 (a) of such title 38 is amended by striking out "33" 
and inserting in lieu thereof "34". 
(h) Section 211(a) of such title 38 is amended by striking out 
"775, 784, 1661, 1761" and inserting in lieu thereof "775, 784". 
(i) Section 903(b) of such title 38 is amended by deleting the last 
sentence thereof. 
(j) Section 1701 of such title 38 is amended (1) by striking out 
"1013(c)(1) of title 50" in subsection (a)(3)(C) and inserting in 
lieu thereof "511(d) of title 10" (2) by striking out paragraphs (8) 
and (9) in subsection (a) thereof and redesignating paragraph (10) 
of such subsection as paragraph (8) and (3) by striking out "and prior 
to the end of the induction period" in subsections (a)(1) and (d) 
thereof. 
(k) Section 1711(b) of such title 38 is amended by striking out 
"33" and inserting in lieu thereof "34", and by inserting immediately 
before the period at the end thereof the following: "or under chapter 
33 of this title as in effect before February 1,1965". 
(1) Section 1731 of title 38, United States Code, is amended by 
striking out subsection (c) thereof and inserting immediately after 
subsection (b) the following new subsections: 
"(c) The Administrator may, pursuant to such regulations as he 
may prescribe, determine enrollment in, pursuit of, and attendance at, 
any program of education or course by an eligible person for any 
period for which an educational assistance allowance is paid on behalf 
of such eligible person under this chapter for pursuing such program 
or course. 
"(d) No educational assistance allowance shall be paid on behalf 
of an eligible person enrolled in a course in an educational institution 
which does not lead to a standard college degree for any period until 
the Administrator shall have received— 
"(1) from the eligible person a certification as to his actual 
attendance during such period; and 
"(2) from the educational institution, a certification, or an 
endorsement on the eligible person's certificate, that he was 
enrolled in and pursuing a course of education during such period. 
"(e) Educational assistance allowances shall be paid as soon as 
practicable after the Administrator is assured of the eligible person's 
enrollment in and pursuit of the program of education for the period 
for which such allowance is to be paid." 
80 STAT.] 
PUBLIC LAW 89-358-MAR. 3, 1966 
25 
(m) Section 1734 of such title 38 is amended by (1) striking out 
^2 stat. 1199. 
"33" in subsection (a) and inserting in lieu thereof "34", and (2) 
striking out "1634" in subsection (b) and inserting in lieu thereof 
"1684". 
(n) Section 1735 of such title 38 is amended to read as follows: "An 
eligible person shall receive the benefits of this chapter while enrolled 
in a course of education offered by an educational institution only if 
such course (1) is approved in accordance with the provisions of sub-
chapter I of chapter 36 of this title, or (2) is approved for the enroll-
ment of the particular individual under the provisions of section 
1737 of this title." 
(o) Section 1736 of such title 38 is amended by (1) striking out 
"(a)", (2) striking out all of subsection (b) thereof, and (3) inserting 
after the phrase "this chapter", both times it appears, the following: 
", or of chapter 36 of this title,". 
(p) Section 3013 of this title 38 is amended by striking out "33" 
and inserting in lieu thereof "34". 
Ante, p. 20. 
GUARANTEED HOME AND FARM LOANS 
SEC. 5. (a) Chapter 37 of title 38 of the United States Code is 
amended by inserting immediately after section 1817 the following 
new section: 
"§ 1818. Veterans who serve after January 31, 1955 
"(a) Each eligible veteran, as defined in paragraphs (1) and (2) 
of subsection (a) of section 1662 of this title, shall be eligible for the 
benefits of this chapter (except sections 1813 and 1815, and business 
loans under section 1814, of this title), subject to the provisions of 
this section. 
"(b) Entitlement under subsection (a), (1) shall cancel any unused 
entitlement under other provisions of this chapter derived from service 
during World War II or the Korean conflict, and (2) shall be reduced 
by the amount by which entitlement from service during World War 
I I or the Korean conflict has been used to obtain a direct, guaranteed, 
or insured loan— 
"(A) on real property which the veteran owns at the time of 
application; or 
"(B) as to which the Administrator has incurred actual liability 
or loss, unless in the event of loss or the incurrence and payment 
of such liability by the Administrator the resulting indebtedness 
has been paid in full. 
"(c) (1) Entitlement to the benefits of this section will expire as 
follows: 
"(A) Ten years from the date of discharge or release from the 
last p)eriod of active duty of the veteran, any part of which 
occurred after January 31, 1955, plus an additional period equal 
to one year for each three months of active duty performed by 
the veteran after such date, except that entitlement shall not 
continue in any case after twenty years from the date of the vet-
eran's discharge or release from his last period of active duty, 
nor shall entitlement expire in any case prior to the date ten years 
after the date of enactment of this Act; or 
"(B) Twenty years from the date of the veteran's discharge 
or release for a service-connected disability from a period of active 
duty, any part of which occurred after January 31, 1955. 
"(C) Direct loans authorized by this section shall not be made 
after January 31, 1976, except pursuant to commitments issued 
by the Administrator on or before that date. 
38 u s e 1801 et 
seq. 
Ante, p. 13. 
74 Stat. 532. 
72 Stat. 1211. 
75 Stat. 201. 
26 
PUBLIC LAW 89-358-MAR. 3, 1966 
[80 STAT. 
"(2) If a loan report or application for loan guaranty is received 
by the Administrator before the date of expiration of the veteran's 
entitlement, the loan may be guaranteed under this chapter after 
such date. 
"(d.) A fee shall be collected from each veteran obtaining a loan 
guaranteed or made under this section, and no loan shall be guaranteed 
or made under this section until the fee payable with respect to such 
loan has been collected and remitted to the Administrator. The 
amount of the fee shall be established from time to time by the Admin-
istrator, but shall in no event exceed one-half of 1 per centum of the 
total loan amount. The amount of the fee may be included in the 
loan to the veteran and paid from the proceeds thereof. The Admin-
istrator shall deposit all fees collected hereunder in the revolving fund 
established under the provisions of section 1824 of this title. 
"(e) Notwithstanding any of the provisions of this section, a vet-
eran deriving entitlement under t)liis section shall not be required to 
pay the fee prescribed by subsection (d) and such entitlement shall 
include eligibility for any of the purposes specified in sections 1813 
and 1815, and business loans under section 1814 of this title, if (1) the 
period of his entitlement to the benefits of this chapter based on service 
during World War I I or the Korean conflict has not expired under 
section 1803(a) (3), and (2) he has not used any of his entitlement 
derived from such service.'' 
(b) The table of sections at the beginning of chapter 37 of such 
title is amended by inserting immediately below 
"1817. Release from liability under guaranty." 
the following: 
•"1818. Veterans who serve after January 31, 1955." 
(c) Section 1822(a) of such title is amended by striking out "or 
1813", and inserting in lieu thereof "1813, or 1818". 
(d) Section 1803(c) (1) of title 38, United States Code, is amended 
by striking out ", with the approval of the Secretary" and all that 
follows through the end thereof and inserting in lieu thereof the 
following: "may from time to time find the loan market demands; 
except that such rate shall in no event exceed that in effect under the 
1
2 use ^709 
provisions of section 203(b) (5) of the National Housing Act." 
75 Stat. 201.' 
(e) Section 1811(d) of such title is amended by striking out 
"$15,000" each place where it appears therein and inserting in lieu 
thereof in each such place "$17,500". 
(f) (1) Subchapter I I I of chapter 37 of such title is amended by 
adding at the end thereof the following new section: 
*'§ 1826. Withholding of payments, benefits, etc. 
"(a) The Administrator shall not, unless he first obtains the con-
sent in writing of an individual, set off against, or otherwise withhold 
from, such individual any benefits payable to such individual under 
any law administered by the Veterans' Administration because of 
liability allegedly arising out of any loan made to, assumed by, or 
guaranteed or insured on account of, such individual under this 
chapter. 
"(b) No officer, employee, department, or agency of the United 
States shall set off against, or otherwise withhold from, any veteran 
or the widow of any veteran any payments (other than benefit pay-
ments under any law administered by the Veterans' Administration) 
which such veteran or widow would otherwise be entitled to receive 
because of any liability to the Administrator allegedly arising out of 
any loan made to, assumed by, or guaranteed or insured on account 
38 u s e 2001-
2005. 
80 STAT.] 
PUBLIC LAW 89-358-MAR. 3, 1966 
27 
of, such veteran or widow under this chapter, unless (1) there is 
first received the consent in writing of such veteran or widow, as 
the case mav be, or (2) such liability and the amount thereof was 
determined by a court of competent jurisdiction in a proceeding to 
which such veteran or widow was a party." 
(2) The analysis of subchapter I I I of such chapter 37 is amended 
by adding at the end thereof the following: 
"1826. Withholding of payments, benefits, etc." 
JOB COUNSELING 
SEC. 6. (a) The heading of chapter 41 of title 38, United States 
Code, is amended by deleting: 
"CHAPTER 41—UNEMPLOYMENT BENEFITS FOR 
VETERANS" 
and inserting therefor: 
"CHAPTER 41--J0B COUNSELING AND 
EMPLOYMENT 
PLACEMENT SERVICE FOR VETERANS" 
(b) The analyses of title 38, United States Code, and of part III 
thereof, are amended by deleting: 
•'41. Unemployment Benefits for Veterans 
2001" 
and inserting therefor: 
•'41. Job Counseling and Employment Placement Service for Veterans 
2001". 
(c) (1) Section 2001 of title 38, United States Code, clauses (3) and 
76 stat. sss. 
(5) of section 2002 of such title, and sections 2003 and 2004 of such title 
are amended by inserting the phrase "or of service after January 31, 
1955" immediately after the phrase "veterans of any war" each time 
such phrase appears therein. 
(2) The first sentence of section 2002 of such title 38 is amended by 
inserting the phrase "or of service after January 31, 1955" immedi-
ately after the phrase "veteran of any war". 
(3) Clauses (1) and (4) of section 2002 of such title 38 are amended 
by inserting the phrase "or of service after January 31,1955," immedi-
ately after the phrase "veterans of any war" each time such phrase 
appears in such clauses. 
WARTIME PRESUMPTIONS FOR VETERANS SERVING AFTER JANUARY 3 1 , 195 5 
SEC. 7. (a) Subchapter IV of chapter 11 of title 38, United States 
Code, is amended by adding at the end thereof the following new 
^^ stat. 1122. 
section: 
"§337. Wartime presumptions for certain veterans 
"For the purposes of this subchapter and subchapter V of this 
chapter and notwithstanding the provisions of sections 332 and 333 
of this subchapter, the provisions of sections 311, 312, and 313 of this 
chapter shall be applicable in the case of any veteran who served in 
the active military, naval, or air service after January 31, 1955." 
(b) The analysis of such subchapter which appears in such chapter 
is amended by adding at the end thereof the following: 
"337. Wartime presumptions for certain veterans." 
MEDICAL CARE 
SEC. 8. Section 610(a) (1) (B) and section 610(b) (2) of title 38, 
United States Code, are each amended by inserting "or of service after 
76 stat. asi; 
January 31, 1955," immediately after "veteran of any war". 
72 stat. lui. 
28 
PUBLIC LAW 89-359-MAR. 7, 1966 
[80 STAT. 
72 Stat. 1169; 
75 Stat. 512. 
54 Stat. 1181. 
64 Stat. 1117. 
72 Stat. 1106. 
77 Stat. 135. 
DECEASED 
VETERANS—FLAGS 
SEC. 9. Section 901 (a) (1) of title 38, United States Code, is amended 
by striking out "or of Mexican border service" and inserting in lieu 
thereof ", of Mexican border service, or of service after January 31, 
1955". 
SOLDIERS' AND SAILORS' CIVIL RELIEF ACT 
SEC. 10. Subsection (1) of section 300 of the Soldiers' and Sailors' 
Civil Relief Act of 1940, as amended (50 App. U.S.C. 530), is amended 
by striking out "$80" and inserting in lieu thereof "$150". 
VETERANS' PREFERENCE 
SEC. 11. Section 2 of the Veterans' Preference Act of 1944, as 
amended (5 U.S.C. 851), is amended by striking out "and" at the end 
of clause (5) and by striking out the period at the end of such section 
and insertmg in lieu thereof a semicolon and the following: "and (7) 
those ex-service men and women who have served on active duty (as 
defined in section 101(21) of title 38, United States Code) at any time 
in any branch of the Armed Forces of the United States for a period 
of more than one hundred and eighty consecutive days after Janu-
ary 31,1955, not including service under the provisions of section 511 
(d) of title 10, United States Code, pursuant to an enlistment in the 
Army National Guard or the Air National Guard or as a Reserve for 
service in the Army Reserve, Naval Reserve, Air Force Reserve, 
Marine Corps Reserve, or Coast Guard Reserve, and who have been 
separated from such Armed Forces under honorable conditions." 
EFFECTIVE DATES 
SEC. 12. (a) Except as otherwise specifically provided, the provisions 
of this Act shall take effect on the date of its enactment, but no edu-
cational assistance allowance shall be payable under chapter 34 of title 
38, United States Code, as added by section 2 of this Act, for any 
period before June 1, 1966, nor for the month of June 1966, unless 
(1) the eligible veteran commenced the pursuit of the course of educa-
tion on or after June 1, 1966, or (2) the pursuit of such course 
continued through June 30, 1966. 
(b) The provisions of section 1765(b) of title 38, United States 
Ante, p. 20. 
Code, as in effect immediately before the enactment of this Act, shall 
remain in effect through May 31, 1966. 
Approved March 3, 1966. 
Public Law 89-359 
» 
u . , n . . 
AN ACT 
March 7, 1966 
[H. R. 10185] 
Ameiuling certain estate tax provisions of the Internal Revenue Code of 1939. 
Be it enacted l)y the Senate and House of Representatives 
of the 
IRC 1939, 
United States of America in Congress oMsernbled^ That (a) the last 
"53"s^l"i3 6. 
sentence of section 894(a) of the Internal Revenue Code of 1939 
(relating to the penalty in the case of a false or fraudvilent estate tax 
return) is amended to read as follows: "If any part of any deficiency 
is due to fraud with intent to evade tax, then 50 per centum of the 
total amount of the deficiency (in addition to such deficiency) shall be 
assessed, collected, and paid, in lieu of the 50 per centum addition to 
53 Stat. 437. 
^j^g ^^^ provlded in section 3612(d) (2)." 
(b) Section 871 (i) of such code (relating to method of assessment) 
is amended by striking out "section 3612(d) (2)" and inserting in lieu 
thereof "section 894(a)''-
53 Stat. 132.