[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2938 Introduced in Senate (IS)]







110th CONGRESS
  2d Session
                                S. 2938

 To amend titles 10 and 38, United States Code, to improve educational 
  assistance for members of the Armed Forces and veterans in order to 
 enhance recruitment and retention for the Armed Forces, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 29, 2008

   Mr. Graham (for himself, Mr. Burr, Mr. McCain, Mr. Chambliss, Mr. 
Lieberman, Mr. Cornyn, Mr. Alexander, Mrs. Hutchison, Mr. Martinez, Mr. 
  Stevens, Mr. Cochran, Ms. Collins, Mr. Barrasso, Mr. Domenici, Mrs. 
Dole, Mr. Wicker, Mr. Isakson, and Mr. Inhofe) introduced the following 
 bill; which was read twice and referred to the Committee on Veterans' 
                                Affairs

_______________________________________________________________________

                                 A BILL


 
 To amend titles 10 and 38, United States Code, to improve educational 
  assistance for members of the Armed Forces and veterans in order to 
 enhance recruitment and retention for the Armed Forces, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Enhancement of 
Recruitment, Retention, and Readjustment Through Education Act of 
2008''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Plan on coordination of current educational assistance programs 
                            and development of additional educational 
                            assistance programs to enable career-
                            oriented members of the Armed Forces to 
                            attain a bachelor's degree.
Sec. 4. Increase in rates of basic educational assistance under the 
                            Montgomery GI Bill.
Sec. 5. Annual stipend for recipients of basic educational assistance 
                            under the Montgomery GI Bill.
Sec. 6. Increase in rates of educational assistance for members of the 
                            Selected Reserve.
Sec. 7. Increase in rates of educational assistance for reserve 
                            component members supporting contingency 
                            operations and other operations with 
                            extended service in the Selected Reserve.
Sec. 8. Enhancement of transferability of entitlement to educational 
                            assistance.
Sec. 9. Use of educational assistance to repay Federal student loans.
Sec. 10. Educational assistance for graduates of the service academies 
                            and Reserve Officers' Training Corps 
                            programs.
Sec. 11. Opportunity for current and certain retired VEAP-era personnel 
                            to enroll in basic educational assistance 
                            under the Montgomery GI Bill.
Sec. 12. College Patriots Grant Program.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) The World War II-era GI Bill assisted almost 8,000,000 
        members of the Armed Forces in readjusting to civilian life 
        after completing their service to the nation. With the support 
        and assistance of America's colleges and universities, the GI 
        Bill provided incentives that transformed American society, 
        making a college degree a realizable goal for millions of 
        Americans.
            (2) In the years following World War II, the GI Bill 
        continued to provide educational benefits for members of the 
        Armed Forces who had been drafted into or volunteered for 
        service.
            (3) The establishment of the All Volunteer Force in 1973, 
        and its development since its inception, has produced highly 
        professional Armed Forces that are recognized as the most 
        effective fighting force the world has ever seen.
            (4) The Sonny Montgomery GI Bill was enacted in 1984 to 
        sustain the All Volunteer Force by providing educational 
        benefits to aid in the recruitment and retention of highly 
        qualified personnel for the Armed Forces and to assist veterans 
        in readjusting to civilian life. Today, it remains a 
        cornerstone of military recruiting and retention planning for 
        the Armed Forces and continues to fulfill its original 
        purposes.
            (5) The All Volunteer Force depends for its effectiveness 
        and vitality on successful recruiting of highly capable men and 
        women, and retention for careers of soldiers, sailors, airmen, 
        and marines, in both the active and reserve components of the 
        Armed Forces, who, with the support of their families and loved 
        ones, develop into professional, dedicated, and experienced 
        officers, noncommissioned officers, and petty officers.
            (6) The achievement of educational goals, including 
        obtaining the means to a college degree, has traditionally been 
        a key reason for volunteering for service in the Armed Forces. 
        For members who serve a career in the Armed Forces, this goal 
        extends to their spouses and children and has resulted in 
        requests for the option to transfer educational benefits under 
        the GI Bill to spouses and children.
            (7) As in the aftermath of World War II, colleges and 
        universities throughout the United States should demonstrate 
        their and the Nation's appreciation to veterans by dedicated 
        programs providing financial aid.
            (8) It is in that national interest for the United States--
                    (A) to express the gratitude of the American people 
                by assisting those who have honorably served in the 
                Armed Forces and returned to civilian life to achieve 
                their educational goals;
                    (B) to provide significant educational benefits to 
                provide incentives for successful recruiting;
                    (C) to motivate continued service in the All 
                Volunteer Force by those members with the potential for 
                military careers and their spouses and children; and
                    (D) to assist those who serve and their families in 
                achieving their personal goals, including higher 
                education, while progressing in a military career.

SEC. 3. PLAN ON COORDINATION OF CURRENT EDUCATIONAL ASSISTANCE PROGRAMS 
              AND DEVELOPMENT OF ADDITIONAL EDUCATIONAL ASSISTANCE 
              PROGRAMS TO ENABLE CAREER-ORIENTED MEMBERS OF THE ARMED 
              FORCES TO ATTAIN A BACHELOR'S DEGREE.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) the outstanding men and women who volunteer for service 
        in the Armed Forces and demonstrate through their service the 
        ability, motivation, and commitment to serve as career 
        commissioned officers, noncommissioned officers, petty 
        officers, and warrant officers should be given the 
        opportunities and resources needed to obtain a bachelor's 
        degree before they complete active duty and retire from the 
        Armed Forces; and
            (2) every effort should be made by the leaders of the Army, 
        Navy, Marine Corps, Air Force, and Coast Guard to demonstrate 
        to members of the Armed Forces who are willing to serve and 
        study that the dual goals of attaining a bachelor's degree and 
        a distinguished military career are achievable and not mutually 
        exclusive.
    (b) Plan To Coordinate and Develop Educational Assistance 
Programs.--
            (1) Plan required.--The Secretary of Defense shall, in 
        consultation with the Secretary of Veterans Affairs, develop a 
        plan to make the attainment of a bachelor's degree an 
        achievable goal for members of the Armed Forces who are 
        motivated towards careers in the Armed Forces and who are able 
        and willing to accept the challenges of military duty and 
        pursuit of college level studies.
            (2) Advice of the service chiefs.--The Secretary of Defense 
        shall develop the plan required by paragraph (1) with the 
        advice of the Chief of Staff of the Army, the Chief of Naval 
        Operations, the Chief of Staff of the Air Force, and the 
        Commandant of the Marine Corps.
            (3) Elements.--The plan required by paragraph (1) shall 
        include the following:
                    (A) Appropriate elements of current programs to 
                assist members of the Armed Forces in obtaining 
                college-level education, including tuition assistance 
                programs, distance learning programs, and technical 
                training and education provided by the military 
                departments, including programs currently administered 
                by the Secretary of Veterans Affairs.
                    (B) Appropriate elements of current programs to 
                provide members of the Armed Forces with assistance in 
                obtaining college-level credit for the technical 
                training and experience they undergo during their 
                military career.
                    (C) One or more additional education programs to 
                assist members of the Armed Forces in obtaining a 
                college-level education, including mechanisms for the 
                provision by the military departments of guidance, 
                mentoring, and resources to assist members in achieving 
                their professional military and personal educational 
                goals.
                    (D) Such additional programs or mechanisms, such as 
                sabbaticals from the Armed Forces or college-level 
                education provided or funded by the military 
                departments, as the Secretary of Defense considers 
                appropriate to assist members of the Armed Forces in 
                making adequate progress towards a bachelor's degree 
                from an accredited institution of higher education 
                while continuing a successful military career.
                    (E) Such mechanisms for the application of the 
                elements of the plan to members of the National Guard 
                and Reserves as the Secretary of Defense considers 
                appropriate to ensure that such members receive 
                appropriate assistance in achieving their professional 
                military and personal educational goals.
                    (F) Such elements of current programs of the 
                military departments for in-service education of 
                members of the Armed Forces as the Secretary of Defense 
                considers appropriate to maintain and enhance the 
                recruitment and retention by the Armed Forces of highly 
                trained and experienced military leaders.
            (4) Submittal to congress.--The Secretary of Defense shall 
        submit to the Committees on Armed Services of the Senate and 
        the House of Representatives a report setting forth the plan 
        required by paragraph (1) not later than August 1, 2009.

SEC. 4. INCREASE IN RATES OF BASIC EDUCATIONAL ASSISTANCE UNDER THE 
              MONTGOMERY GI BILL.

    (a) Increase in General Rates and Augmented Rates for Extended 
Service.--
            (1) Rates based on three years of obligated service.--
        Subsection (a)(1) of section 3015 of title 38, United States 
        Code, is amended by striking ``on a full-time basis, at the 
        monthly rate of'' and all that follows and inserting ``on a 
        full-time basis--
                    ``(A) in the case of an individual who served on 
                active duty in the Armed Forces for 12 or more years, 
                at the monthly rate of--
                            ``(i) for months occurring during fiscal 
                        year 2009, $1,650;
                            ``(ii) for months occurring during fiscal 
                        year 2010, $1,800;
                            ``(iii) for months occurring during fiscal 
                        year 2011, $2,000; and
                            ``(iv) for months occurring during a 
                        subsequent fiscal year, the amount for months 
                        occurring during the preceding fiscal year 
                        increased under subsection (h); and
                    ``(B) in the case of an individual who served on 
                active duty in the Armed Forces for less than 12 years, 
                at the monthly rate of--
                            ``(i) for months occurring during fiscal 
                        year 2009, $1,500; and
                            ``(ii) for months occurring during a 
                        subsequent fiscal year, the amount for months 
                        occurring during the preceding fiscal year 
                        increased under subsection (h); or''.
            (2) Rates based on two years of obligated service.--
        Subsection (b)(1) of such section is amended--
                    (A) by striking subparagraphs (A) through (C) and 
                inserting the following new subparagraph (A):
                    ``(A) for months occurring during fiscal year 2009, 
                $950; and''; and
                    (B) by redesignating subparagraph (D) as 
                subparagraph (B).
    (b) Effective Date.--
            (1) In general.--The amendments made by subsection (a) 
        shall take effect on October 1, 2008, and shall apply with 
        respect to basic educational assistance payable for months 
        beginning on or after that date.
            (2) Limitation on cost-of-living adjustments.--
                    (A) Certain rates based on three years of obligated 
                service.--No adjustment under subsection (h) of section 
                3015 of title 38, United States Code, shall be made in 
                the rates of educational assistance payable under 
                subsection (a)(1)(A) of such section (as amended by 
                subsection (a)(1) of this section) for any of fiscal 
                years 2009 through 2011.
                    (B) Other rates.--No adjustment under subsection 
                (h) of section 3015 of title 38, United States Code, 
                shall be made in the rates of educational assistance 
                payable under subsection (a)(1)(B) of such section (as 
                so amended), or subsection (b) of such section, for 
                fiscal year 2009.

SEC. 5. ANNUAL STIPEND FOR RECIPIENTS OF BASIC EDUCATIONAL ASSISTANCE 
              UNDER THE MONTGOMERY GI BILL.

    (a) Entitlement to Stipend.--
            (1) In general.--Subchapter II of chapter 30 of title 38, 
        United States Code, is amended by adding at the end the 
        following new section:
``Sec. 3020A. Educational stipend
    ``(a) Entitlement.--Each individual receiving basic educational 
assistance under this subchapter who is pursuing a program of education 
at an institution of higher learning (as such term is defined in 
section 3452(f) of this title) is entitled to an educational stipend 
under this section.
    ``(b) Amount of Stipend.--The educational stipend payable under 
this section to an individual entitled to such a stipend shall be 
paid--
            ``(1) in the case of an individual pursuing an approved 
        program of education on at least a half-time basis, at the 
        annual rate of $500; and
            ``(2) in the case of an individual pursuing an approved 
        program of education on less than a half-time basis, at the 
        annual rate of $350.
    ``(c) Payment Frequency and Method.--The educational stipend 
payable under this subsection shall be paid with such frequency 
(including by lump sum), and by such mechanisms, as the Secretary shall 
prescribe for purposes of this section.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 30 of such title is amended by adding at 
        the end of the items relating to subchapter II the following 
        new item:

``3020A. Educational stipend.''.
    (b) Effective Date.--Section 3020A of title 38, United States Code, 
as added by subsection (a), shall take effect on the date that is one 
year after the enactment of this Act.

SEC. 6. INCREASE IN RATES OF EDUCATIONAL ASSISTANCE FOR MEMBERS OF THE 
              SELECTED RESERVE.

    (a) Increase in Rates.--Section 16131(b)(1) of title 10, United 
States Code, is amended--
            (1) in subparagraph (A), by striking ``$251'' and inserting 
        ``$634'';
            (2) in subparagraph (B), by striking ``$188'' and inserting 
        ``$474''; and
            (3) in subparagraph (C), by striking ``$125'' and inserting 
        ``$314''.
    (b) Effective Date.--
            (1) In general.--The amendments made by subsection (a) 
        shall take effect on October 1, 2008, and shall apply with 
        respect to educational assistance payable for months beginning 
        on or after that date.
            (2) No cost-of-living adjustment.--No adjustment under 
        paragraph (2) of section 16131(b) of title 10, United States 
        Code, shall be made in the rates of educational assistance 
        payable under paragraph (1) of such section for fiscal year 
        2009.

SEC. 7. INCREASE IN RATES OF EDUCATIONAL ASSISTANCE FOR RESERVE 
              COMPONENT MEMBERS SUPPORTING CONTINGENCY OPERATIONS AND 
              OTHER OPERATIONS WITH EXTENDED SERVICE IN THE SELECTED 
              RESERVE.

    (a) Increase in Rates for Extended Service.--Paragraph (2) of 
section 16162(c) of title 10, United States Code, is amended to read as 
follows:
    ``(2) The educational assistance allowance provided under this 
chapter shall be the amount as follows (as adjusted under paragraphs 
(3) and (4)):
            ``(A) In the case of a member who serves an aggregate of 12 
        years or more in the Selected Reserve of the Ready Reserve, the 
        amount provided under section 3015(a)(1)(A) of title 38 for the 
        fiscal year concerned, except that if a member otherwise 
        covered by this subparagraph ceases serving in the Selected 
        Reserve the amount shall be the amount provided under 
        subparagraph (B) of this paragraph.
            ``(B) In the case of any other member, the amount provided 
        under section 3015(a)(1)(B) of title 38 for the fiscal year 
        concerned.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2008, and shall apply with respect to 
educational assistance payable for months beginning on or after that 
date.

SEC. 8. ENHANCEMENT OF TRANSFERABILITY OF ENTITLEMENT TO EDUCATIONAL 
              ASSISTANCE.

    (a) Modification of Authority To Transfer Entitlement Under 
Montgomery GI Bill.--
            (1) In general.--Subsection (a) of section 3020 of title 
        38, United States Code, is amended to read as follows:
    ``(a) In General.--Subject to the provisions of this section, the 
Secretary of Defense shall authorize each Secretary concerned to permit 
an individual described 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 unused 
portion of such individual's entitlement to such assistance, subject to 
the limitation under subsection (d).''.
            (2) Eligible individuals.--Subsection (b) of such section 
        is amended to read as follows:
    ``(b) Eligible Individuals.--An individual referred to in 
subsection (a) is any member of the Armed Forces serving on active duty 
or as a member of the Selected Reserve who, at the time of the approval 
by the Secretary concerned of the member's request to transfer 
entitlement to basic educational assistance under this section--
            ``(1) has completed six years of service in the Armed 
        Forces; and
            ``(2) meets such other requirements as the Secretary of 
        Defense may prescribe for purposes of this section.''.
            (3) Limitations on months of transfer.--Subsection (d) of 
        such section is amended to read as follows:
    ``(d) Number of Months Transferrable.--(1) Except as provided in 
paragraphs (2) and (3), an individual may transfer under this section 
any number of months of unused entitlement of the individual to basic 
educational assistance under this chapter.
    ``(2) In the case of an individual who has completed at least six 
but less than 12 years of service in the Armed Forces at the time of 
the approval by the Secretary concerned of the individual's request to 
transfer entitlement under this section, the number of months that may 
be transferred by the individual under this section may not exceed the 
lesser of--
            ``(A) the number of months transferrable by the individual 
        under paragraph (1); or
            ``(B) 18 months.''.
            (4) Timing, revocation, and modification of transfer.--
        Subsection (f) of such section is amended--
                    (A) in paragraph (1), by striking ``without 
                regard'' and all that follows and inserting ``while the 
                individual is a member of the Armed Forces.''; and
                    (B) in paragraph (2)(A), by inserting ``while the 
                individual is serving as a member of the Armed Forces 
                or in the Selected Reserve'' after ``at any time''.
            (5) Exclusion from marital property.--Subsection (f) of 
        such section is further amended by adding at the end the 
        following new paragraph:
    ``(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 proceeding.''.
            (6) Overpayment.--Subsection (i) of such section is 
        amended--
                    (A) by striking ``(1)'' before ``In the event''; 
                and
                    (B) by striking paragraphs (2) and (3).
            (7) Regulations.--Subsection (k) of such section is amended 
        to read as follows:
    ``(k) Regulations.--The Secretary of Defense shall, in coordination 
with the Secretary of Veterans Affairs, prescribe regulations for 
purposes of this section. Such regulations shall specify the following:
            ``(1) The circumstances under which the Secretaries 
        concerned may permit and approve transfers of entitlement under 
        this section.
            ``(2) Such requirements for eligibility for transfer of 
        entitlement under this section as the Secretary of Defense 
        considers appropriate for purposes of subsection (b)(2).
            ``(3) The manner and effect of an election to modify or 
        revoke a transfer of entitlement under subsection (f)(2).''.
            (8) Heading amendment.--The heading of such section is 
        amended to read as follows:
``Sec. 3020. Transfer of entitlement to basic educational assistance''.
            (9) Clerical amendment.--The table of sections at the 
        beginning of chapter 30 of such title is amended by striking 
        the item relating to section 3020 and inserting the following:

``3020. Transfer of entitlement to basic educational assistance.''.
    (b) Authority for Transfer of Entitlement Under Reserve Components 
Educational Assistance Programs.--
            (1) Selected reserve program.--
                    (A) In general.--Chapter 1606 of title 10, United 
                States Code, is amended by inserting after section 
                16131a the following new section:
``Sec. 16131b. Transfer of entitlement to educational assistance
    ``(a) In General.--Subject to the provisions of this section, the 
Secretary concerned may permit a member of the Armed Forces described 
in subsection (b) who is entitled to 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 limitations under subsection (d).
    ``(b) Eligible Members.--A member described in this subsection is a 
member of the Selected Reserve of the Ready Reserve who, at the time of 
the approval of the member's request to transfer entitlement to 
educational assistance under this section--
            ``(1) has completed at least six years of service in the 
        Selected Reserve; and
            ``(2) meets such other requirements as the Secretary of 
        Defense may prescribe for purposes of this section.
    ``(c) Eligible Dependents.--A member approved to transfer an 
entitlement to 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) Number of Months Transferrable.--(1) Except as provided in 
paragraph (2), a member may transfer under this section any number of 
months of unused entitlement of the member to educational assistance 
under this chapter.
    ``(2) In the case of a member who has completed at least six but 
less than 12 years of service in the Selected Reserve at the time of 
the approval by the Secretary concerned of the member's request to 
transfer entitlement under this section, the number of months that may 
be transferred by the member under this section may not exceed the 
lesser of--
            ``(A) the number of months transferrable by the individual 
        under paragraph (1); or
            ``(B) 18 months.
    ``(e) Designation of Transferee.--A member transferring an 
entitlement to educational assistance under this section shall--
            ``(1) designate the dependent or dependents to whom such 
        entitlement is being transferred;
            ``(2) designate the number of months of such entitlement 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 Modification.--(1) Subject 
to the time limitation for use of entitlement under section 16133 of 
this title, a member approved to transfer entitlement to educational 
assistance under this section may transfer such entitlement at any time 
after the approval of the member's request to transfer such 
entitlement.
    ``(2)(A) A member transferring entitlement under this section may 
modify or revoke at any time the transfer of any unused portion of the 
entitlement so transferred.
    ``(B) The modification 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 proceeding.
    ``(g) Commencement of Use.--A dependent to whom entitlement to 
educational assistance is transferred under this section may not 
commence the use of the transferred entitlement until--
            ``(1) in the case of entitlement transferred to a spouse, 
        the completion by the member making the transfer of six years 
        of service in the Selected Reserve; or
            ``(2) in the case of entitlement transferred to a child, 
        both--
                    ``(A) the completion by the member making the 
                transfer of six years of service in the Selected 
                Reserve; and
                    ``(B) either--
                            ``(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 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 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 payable to a 
dependent to whom entitlement is transferred under this section shall 
be the monthly amount payable to the member making the transfer under 
section 16131 or 16132a of this title, as applicable.
    ``(4)(A) The death of a member transferring entitlement under this 
section shall not affect the use of the entitlement by the dependent to 
whom the entitlement is transferred.
    ``(B) The involuntary separation or retirement of a member 
transferring entitlement under this section because of a 
nondiscretionary provision of law for age or for years of service, as 
described in section 16133(b) of this title, or 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.
    ``(5) A child to whom entitlement is transferred under this section 
may not use any entitlement so transferred after attaining the age of 
26 years.
    ``(6) The purposes for which a dependent to whom entitlement is 
transferred under this section may use such entitlement shall include 
the pursuit and completion of the requirements of a secondary school 
diploma (or equivalency certificate).
    ``(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.
    ``(i) Overpayment.--(1) In the event of an overpayment of 
educational assistance 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 of the overpayment for purposes of section 3685 of title 
38.
    ``(2)(A) Except as provided in subparagraph (B), in the case of a 
member transferring entitlement under this section whose eligibility is 
terminated under section 16134(2) of this title, the amount of any 
transferred entitlement under this section that is used by a dependent 
of the member as of the date of the failure of the member to 
participate satisfactorily in training as specified in section 16134(2) 
of this title shall be treated as an overpayment of educational 
assistance under paragraph (1).
    ``(B) Subparagraph (A) shall not apply in the case of a member who 
fails to complete service agreed to by the member--
            ``(i) by reason of the death of the member; or
            ``(ii) for a reason referred to in section 16133(b) of this 
        title.
    ``(j) Approvals of Transfer Subject to Availability of 
Appropriations.--The Secretary concerned may approve transfers of 
entitlement to educational assistance under this section in a fiscal 
year only to the extent that appropriations for military personnel are 
available in that fiscal year for purposes of making deposits in the 
Department of Defense Education Benefits Fund under section 2006 of 
this title in that fiscal year to cover the present value of future 
benefits payable from the Fund for the Department of Defense portion of 
payments of educational assistance attributable to increased usage of 
benefits as a result of such transfers of entitlement in that fiscal 
year.
    ``(k) Regulations.--The Secretary of Defense shall, in consultation 
with the Secretary of Veterans Affairs, prescribe regulations for 
purposes of this section. Such regulations shall specify the following:
            ``(1) The circumstances under which the Secretaries 
        concerned may permit and approve transfers of entitlement under 
        this section.
            ``(2) Such requirements for eligibility for transfer of 
        entitlement under this section as the Secretary of Defense 
        considers appropriate for purposes of subsection (b)(2).
            ``(3) The manner and effect of an election to modify or 
        revoke a transfer of entitlement under subsection (f)(2).''.
                    (B) Clerical amendment.--The table of sections at 
                the beginning of chapter 1606 of such title is amended 
                by inserting after the item relating to section 16131a 
                the following new item:

``16131b. Transfer of entitlement to educational assistance.''.
            (2) Program for reserve components supporting contingency 
        and other operations.--
                    (A) In general.--Chapter 1607 of title 10, United 
                States Code, is amended by inserting after section 
                16162a the following new section:
``Sec. 16162b. Transfer of entitlement to educational assistance
    ``(a) In General.--Subject to the provisions of this section, the 
Secretary concerned may permit a member of the Armed Forces described 
in subsection (b) who is entitled to 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 limitations under subsection (d).
    ``(b) Eligible Members.--A member referred to in subsection (a) is 
a member of the Armed Forces who, at the time of the approval of the 
member's request to transfer entitlement to educational assistance 
under this section--
            ``(1) has completed at least six years of service in the 
        Armed Forces; and
            ``(2) meets such other requirements as the Secretary of 
        Defense may prescribe for purposes of this section.
    ``(c) Eligible Dependents.--A member approved to transfer an 
entitlement to 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) Number of Months Transferrable.--(1) Except as provided in 
paragraph (2), a member may transfer under this section any number of 
months of unused entitlement of the member to educational assistance 
under this chapter.
    ``(2) In the case of a member who has completed at least six but 
less than 12 years of service in the Armed Forces at the time of the 
approval by the Secretary concerned of the member's request to transfer 
entitlement under this section, the number of months that may be 
transferred by the member under this section may not exceed the lesser 
of--
            ``(A) the number of months transferrable by the individual 
        under paragraph (1); or
            ``(B) 18 months.
    ``(e) Designation of Transferee.--A member transferring an 
entitlement to educational assistance under this section shall--
            ``(1) designate the dependent or dependents to whom such 
        entitlement is being transferred;
            ``(2) designate the number of months of such entitlement 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 Modification.--(1) Subject 
to the time limitation for use of entitlement under section 16164 of 
this title, a member approved to transfer entitlement to educational 
assistance under this section may transfer such entitlement only while 
serving as a member of the Armed Forces when the transfer is executed.
    ``(2)(A) A member transferring entitlement under this section may 
modify or revoke at any time the transfer of any unused portion of the 
entitlement so transferred.
    ``(B) The modification 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.
    ``(g) Commencement of Use.--A dependent to whom entitlement to 
educational assistance as transferred under this section may not 
commence the use of the transferred entitlement until--
            ``(1) in the case of entitlement transferred to a spouse, 
        the completion by the member making the transfer of the years 
        of service in the Armed Forces applicable to the member under 
        subsection (b); or
            ``(2) in the case of entitlement transferred to a child, 
        both--
                    ``(A) the completion by the member making the 
                transfer of the years of service in the Armed Forces 
                applicable to the member under subsection; and
                    ``(B) either--
                            ``(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 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 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 payable to a 
dependent to whom entitlement is transferred under this section shall 
be the monthly amount payable to the member making the transfer under 
section 16162 or 16162a of this title, as applicable.
    ``(4) The death of a member transferring an entitlement under this 
section shall not affect the use of the entitlement by the dependent to 
whom the entitlement is transferred.
    ``(5) A child to whom entitlement is transferred under this section 
may not use any entitlement so transferred after attaining the age of 
26 years.
    ``(6) The purposes for which a dependent to whom entitlement is 
transferred under this section may use such entitlement shall include 
the pursuit and completion of the requirements of a secondary school 
diploma (or equivalency certificate).
    ``(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.
    ``(i) Overpayment.--In the event of an overpayment of educational 
assistance 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 of the overpayment for purposes of section 3685 of title 38.
    ``(j) Approvals of Transfer Subject to Availability of 
Appropriations.--The Secretary concerned may approve transfers of 
entitlement to educational assistance under this section in a fiscal 
year only to the extent that appropriations for military personnel are 
available in that fiscal year for purposes of making deposits in the 
Department of Defense Education Benefits Fund under section 2006 of 
this title in that fiscal year to cover the present value of future 
benefits payable from the Fund for the Department of Defense portion of 
payments of educational assistance attributable to increased usage of 
benefits as result of such transfers of entitlement in that fiscal 
year.
    ``(k) Regulations.--The Secretary of Defense shall, in consultation 
with the Secretary of Veterans Affairs, prescribe regulations for 
purposes of this section. Such regulations shall specify the following:
            ``(1) The circumstances under which the Secretaries 
        concerned may permit and approve transfers of entitlement under 
        this section.
            ``(2) Such requirements for eligibility for transfer of 
        entitlement under this section as the Secretary of Defense 
        considers appropriate for purposes of subsection (b)(2).
            ``(3) The manner and effect of an election to modify or 
        revoke a transfer of entitlement under subsection (f)(2).''.
                    (B) Clerical amendment.--The table of sections at 
                the beginning of chapter 1607 of such title is amended 
                by inserting after the item relating to section 16162a 
                the following new item:

``16162b. Transfer of entitlement to educational assistance.''.
            (3) Funding under department of defense education benefits 
        fund.--Section 2006(b)(2)(D) of title 10, United States Code, 
        is amended by inserting before the period at the end the 
        following: ``, including payments attributable to increased 
        usage of benefits as a result of transfers of entitlement to 
        educational assistance under sections 16131b and 16162b of this 
        title''.
    (c) Effective Date.--The amendments made by this subsection shall 
take effect on October 1, 2009.

SEC. 9. USE OF EDUCATIONAL ASSISTANCE TO REPAY FEDERAL STUDENT LOANS.

    (a) Use of Educational Assistance To Repay Federal Student Loans.--
            (1) In general.--Subchapter II of chapter 30 of title 38, 
        United States Code, as amended by section 4(a) of this Act, is 
        further amended by inserting after section 3020A the following 
        new section:
``Sec. 3020B. Use of basic educational assistance benefits for 
              repayment of Federal student loans
    ``(a) In General.--An individual entitled to basic educational 
assistance under this subchapter who is serving on active duty in the 
Armed Forces may elect to apply amounts of basic educational assistance 
otherwise available to the individual under this subchapter to repay 
all or a portion of the outstanding principal and interest on any 
Federal student loan owed by the individual for the individual's 
pursuit of a course of education.
    ``(b) Designation of Loans and Amounts Payable.--An individual 
electing under this section to apply amounts of basic educational 
assistance to the payment of the outstanding principal and interest on 
Federal student loans shall designate (in such form and manner as the 
Secretary shall prescribe for purposes of this section) the following:
            ``(1) Each Federal student loan of the individual for which 
        payment shall be made under this section.
            ``(2) For each Federal student loan designated under 
        paragraph (1), the monthly amount to be paid under this 
        section.
    ``(c) Limitation on Amount of Payments.--(1) The monthly amount 
payable with respect to an individual under this section may not exceed 
the monthly rate of basic educational assistance to which the 
individual is otherwise entitled under this subchapter at the time of 
payment of such monthly amount.
    ``(2) The aggregate amount of basic educational assistance payable 
with respect to an individual under this section for any 12-month 
period may not exceed $6,000.
    ``(d) Frequency of Payments.--Payment of amounts of principal and 
interest on Federal student loans of an individual under this section 
shall be made on a monthly basis.
    ``(e) Cessation of Payments.--Payments made under this section with 
respect to an individual shall cease if the individual ceases serving 
on active duty in the Armed Forces, effective as of the first month 
that begins after the date on which the individual ceases serving on 
active duty in the Armed Forces.
    ``(f) Charge Against Entitlement.--The period of entitlement to 
basic educational assistance under this subchapter of an individual for 
whom payments are made under this section shall be charged at the rate 
of one month for each payment or aggregate of payments under this 
section that are equivalent in amount to the monthly rate of basic 
educational assistance to which the individual is otherwise entitled 
under this subchapter.
    ``(g) Regulations.--The Secretary shall prescribe such regulations 
as the Secretary considers appropriate for purposes of the 
administration of this section.
    ``(h) Federal Student Loan Defined.--In this section, the term 
`Federal student loan' means any loan made under title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1070 et seq.).''.
            (2) Clerical amendment.--The table of sections of 
        subchapter II of chapter 30 of such title, as so amended, is 
        further amended by inserting after the item relating to section 
        3020A the following new item:

``3020B. Use of basic educational assistance benefits for repayment of 
                            Federal student loans.''.
    (b) Effective Date.--Section 3020B of title 38, United States Code, 
as added by subsection (a), shall apply with respect to educational 
assistance payable for months that begin on or after the date that is 
one year after the date of the enactment of this Act.

SEC. 10. EDUCATIONAL ASSISTANCE FOR GRADUATES OF THE SERVICE ACADEMIES 
              AND RESERVE OFFICERS' TRAINING CORPS PROGRAMS.

    (a) Active Duty Program.--
            (1) In general.--Subsection (a)(1) of section 3011 of title 
        38, United States Code, is amended--
                    (A) in subparagraph (B), by striking ``or'' at the 
                end;
                    (B) in subparagraph (C), by adding ``or'' at the 
                end; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(D) after September 30, 2009--
                            ``(i) receives a commission as an officer 
                        in the Armed Forces--
                                    ``(I) upon graduation from the 
                                United States Military Academy, the 
                                United States Naval Academy, the United 
                                States Air Force Academy, or the Coast 
                                Guard Academy; or
                                    ``(II) upon completion of a Senior 
                                Reserve Officers' Training Corps 
                                program under chapter 103 of title 10; 
                                and
                            ``(ii) completes at least five years of 
                        continuous active duty in the Armed Forces 
                        (excluding any period of obligated service in 
                        connection with receipt of a commission as an 
                        officer in the Armed Forces under clause (i) 
                        and excluding any other period of obligated 
                        service in connection with education, training, 
                        or instruction provided or funded, whether in 
                        whole or in part, by the United States);''.
            (2) Conforming amendments.--Such section is further 
        amended--
                    (A) in subsection (b), by striking ``subsection 
                (c)(1)'' and inserting ``subsection (c)'';
                    (B) in subsection (c)--
                            (i) by striking ``(1)'' after ``(c)''; and
                            (ii) by striking paragraphs (2) and (3); 
                        and
                    (C) in subsection (e)(1), by striking ``subsection 
                (c)(1)'' and inserting ``subsection (c)''.
    (b) Selected Reserve Program.--
            (1) In general.--Subsection (a)(1) of section 3012 of such 
        title is amended--
                    (A) in subparagraph (B), by striking ``or'' at the 
                end;
                    (B) in subparagraph (C), by adding ``or'' at the 
                end; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(D) after September 30, 2009--
                            ``(i) receives a commission as an officer 
                        in the Armed Forces--
                                    ``(I) upon graduation from the 
                                United States Military Academy, the 
                                United States Naval Academy, the United 
                                States Air Force Academy, or the Coast 
                                Guard Academy; or
                                    ``(II) upon completion of a Senior 
                                Reserve Officers' Training Corps 
                                program under chapter 103 of title 10; 
                                and
                            ``(ii) completes at least five years of 
                        continuous active duty in the Armed Forces 
                        (excluding any period of obligated service in 
                        connection with receipt of a commission as an 
                        officer in the Armed Forces under clause (i) 
                        and excluding any other period of obligated 
                        service in connection with education, training, 
                        or instruction provided or funded, whether in 
                        whole or in part, by the United States);''.
            (2) Conforming amendments.--Such section is further 
        amended--
                    (A) in subsection (c), by striking ``subsection 
                (d)(1)'' and inserting ``subsection (d)'';
                    (B) in subsection (d)--
                            (i) by striking ``(1)'' after ``(d)''; and
                            (ii) by striking paragraphs (2) and (3); 
                        and
                    (C) in subsection (f)(1), by striking ``subsection 
                (d)(1)'' and inserting ``subsection (d)''.
    (c) Amount of Basic Educational Assistance.--Section 3015(c) of 
such title is amended--
            (1) in paragraph (1), by striking ``paragraph (2)'' and 
        inserting ``paragraphs (2) and (3)''; and
            (2) by adding at the end the following new paragraph:
    ``(3) Paragraph (1) of this section also applies to the following:
            ``(A) An individual entitled to an educational assistance 
        allowance under section 3011 of this title by reason of 
        subsection (a)(1)(D) of such section.
            ``(B) An individual entitled to an educational assistance 
        allowance under section 3012 of this title by reason of 
        subsection (a)(1)(D) of such section.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2009.

SEC. 11. OPPORTUNITY FOR CURRENT AND CERTAIN RETIRED VEAP-ERA PERSONNEL 
              TO ENROLL IN BASIC EDUCATIONAL ASSISTANCE UNDER THE 
              MONTGOMERY GI BILL.

    (a) Opportunity for Current and Certain Retired VEAP-Era Personnel 
to Enroll.--
            (1) In general.--Chapter 30 of title 38, United States 
        Code, is amended by inserting after section 3018C the following 
        new section:
``Sec. 3018D. Opportunity for current and certain retired VEAP-era 
              personnel to enroll
    ``(a) In General.--An individual described in subsection (b) who 
makes an election described in paragraph (5) of such subsection is 
entitled to basic educational assistance under this chapter, subject to 
the provisions of subsection (d).
    ``(b) Covered Individuals.--An individual described in this 
subsection is an individual who meets each of the following 
requirements:
            ``(1) The individual first became a member of the Armed 
        Forces or first entered on active duty as a member of the Armed 
        Forces on or after January 1, 1977, but before July 1, 1985.
            ``(2) The individual, as of the date of the individual's 
        election under paragraph (5)--
                    ``(A) is serving on active duty without a break in 
                service (other than as described in section 3202(1)(C) 
                of this title) since the date the individual first 
                became such a member or first entered on active duty as 
                such a member; or
                    ``(B) is retired from the Armed Forces after 
                serving at least 20 years on active duty in the Armed 
                Forces, which service included service on active duty 
                in the Armed Forces on or after September 11, 2001, and 
                elected not to participate in the program of 
                educational assistance under chapter 32 of this title.
            ``(3) The individual, before applying for benefits under 
        this section, has completed the requirements of a secondary 
        school diploma (or equivalency certificate) or has successfully 
        completed the equivalent of 12 semester hours in a program of 
        education leading to a standard college degree, but has not 
        completed the requirements for nor been awarded a bachelor's 
        degree.
            ``(4) The individual--
                    ``(A) in the case of an individual described by 
                paragraph (2)(A), is discharged with an honorable 
                discharge or released with service characterized as 
                honorable by the Secretary concerned; or
                    ``(B) in the case of an individual described by 
                paragraph (2)(B), was discharged with an honorable 
                discharge or released with service characterized as 
                honorable by the Secretary concerned.
            ``(5) During the one-year period beginning on October 1, 
        2009, the individual makes an irrevocable election to receive 
        benefits under this section pursuant to procedures which the 
        Secretary of each military department shall provide in 
        accordance with regulations prescribed by the Secretary of 
        Defense for the purpose of carrying out this section or which 
        the Secretary of Transportation shall provide for such purpose 
        with respect to the Coast Guard when it is not operating as a 
        service in the Navy.
    ``(c) Reduction of Pay; Collection and Payment of Amounts.--(1) In 
the case of an individual described by subsection (b) who makes an 
election under this section to become entitled to basic educational 
assistance under this chapter--
            ``(A) the basic pay or retired or retainer pay, as 
        applicable, of the individual shall be reduced (in a manner 
        determined by the Secretary concerned) until the total amount 
        by which such pay is reduced is $2,700; or
            ``(B) to the extent that the basic pay of the individual is 
        not so reduced before the individual's discharge or release 
        from active duty as described in subsection (d)(4)(A), the 
        Secretary concerned shall collect from the individual an amount 
        equal to the difference between $2,700 and the total amount of 
        reductions with respect to the individual under subparagraph 
        (A).
    ``(2) An individual covered by paragraph (1) may at any time pay 
the Secretary concerned an amount equal to the difference between the 
total of the reductions otherwise required with respect to the 
individual under that paragraph and the total amount of the reductions 
with respect to the individual under that paragraph at the time of the 
payment.
    ``(3) Any amounts collected under paragraph (1)(B) or paid under 
paragraph (2) shall be paid into the Department of Defense Education 
Benefits Fund under section 2006 of title 10.
    ``(4) The total amount of reductions in pay, or of collections or 
payments, required with respect to an individual under paragraph (1) 
shall be achieved not later than 12 months after the date on which the 
individual makes an election under subsection (b)(5).
    ``(5) No amount of educational assistance allowance under this 
chapter shall be paid to an individual covered by paragraph (1) until 
the date on which the total amount of reductions in pay, or of 
collections or payments, required with respect to the individual under 
paragraph (1) is achieved.
    ``(d) Limitations on Basic Educational Assistance.--(1) The basic 
educational assistance allowance payable under this chapter to an 
individual entitled to such educational assistance allowance under this 
section shall be payable at the monthly rate of basic educational 
assistance payable under section 3015(a)(1)(B) of this title.
    ``(2) Basic educational assistance under this section shall be 
available only for pursuit of a non-degree vocational training program, 
an associate degree, or a bachelor's degree, but shall not be available 
for pursuit of a masters degree or other advanced college degree.
    ``(3) An individual entitled under this section to basic 
educational assistance under this chapter is entitled to the 
educational stipend provided under section 3020A of this title.
    ``(4)(A) Entitlement under this section to basic educational 
assistance under this chapter is not transferrable under the provisions 
of section 3020 of this title.
    ``(B) An individual entitled under this section to basic 
educational assistance under this chapter is not eligible for the 
following:
            ``(i) The use of basic educational assistance benefits 
        under this chapter for the repayment of Federal student loans 
        under section 3020B of this title.
            ``(ii) Supplemental educational assistance authorized by 
        subchapter III of this chapter.
    ``(5)(A) Except as provided in subparagraph (B), the provisions of 
section 3031 of this title shall apply to the use of entitlement under 
this section to basic educational assistance under this chapter.
    ``(B) In the case of an individual entitled under this section to 
basic educational assistance under this chapter who is described by 
subsection (b)(2)(B), the period during which the individual may use 
such entitlement expires on October 1, 2019.
    ``(e) Outreach.--The Secretary shall, in coordination with the 
Secretary of Defense, provide for notice of the opportunity under this 
section to elect to become entitled to basic educational assistance 
under this chapter.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 30 of such title is amended by inserting 
        after the item relating to section 3018C the following new 
        item:

``3018D. Opportunity for current and certain retired VEAP-era personnel 
                            to enroll.''.
    (b) Conforming Amendments.--Section 3017(b)(1) of such title is 
amended--
            (1) in subparagraphs (A) and (C), by striking ``or 
        3018C(e)'' and inserting ``3018C(e), or 3018D(c)''; and
            (2) in subparagraph (B), by striking ``or 3018C(e) of this 
        title'' after ``section 3018C(e), or 3018D(c) of this title or 
        paid by the individual under section 3018D(c) of this title''.

SEC. 12. COLLEGE PATRIOTS GRANT PROGRAM.

    (a) Program Authorized.--
            (1) In general.--Chapter 36 of title 38, United States 
        Code, is amended by adding at the end the following new 
        subchapter:

                ``SUBCHAPTER IV--COLLEGE PATRIOTS GRANTS

``Sec. 3699A. College Patriots Grant Program
    ``(a) Purpose.--It is the purpose of this section to provide, 
through a partnership with the Department and institutions of higher 
education, supplemental educational grants to assist in making 
available the benefits of postsecondary education to qualified veterans 
by meeting such veterans' unmet financial need.
    ``(b) Establishment of Program.--The Secretary shall carry out a 
supplemental educational grant program under which--
            ``(1) an institution of higher education participating in 
        the program voluntarily provides a covered individual enrolled 
        in the institution with the non-Federal share of a percentage 
        of the covered individual's unmet financial need determined in 
        accordance with subsection (e); and
            ``(2) the Secretary provides the Federal share of a 
        percentage of the covered individual's unmet financial need 
        determined in accordance with subsection (e).
    ``(c) Designation of Program.--The program under this section shall 
be known as the `College Patriots Grant Program'.
    ``(d) Institutional Eligibility Criteria.--Assistance may be made 
available under this section only to an institution of higher education 
that satisfies any criteria specified by the Secretary. Such criteria 
shall include an agreement or other appropriate assurance from the 
institution of higher education that--
            ``(1) the non-Federal share of a covered individual's unmet 
        financial need awarded under this section shall be provided 
        from non-Federal resources, including--
                    ``(A) institutional grants and scholarships;
                    ``(B) tuition or fee waivers;
                    ``(C) State scholarships; and
                    ``(D) foundation or other charitable organization 
                funds; and
            ``(2) funds made available under this section shall be 
        provided to a covered individual for whom the institution of 
        higher education has made a determination that the covered 
        individual has an unmet financial need, which determination 
        shall be made before including Federal student loans under 
        title IV of the Higher Education Act of 1965 in the covered 
        individual's financial aid package.
    ``(e) Federal Share; Non-Federal Share.--
            ``(1) In general.--The Secretary shall not approve an 
        institution of higher education for participation in the 
        College Patriots Grant Program unless the institution of higher 
        education has provided, in the manner required by the 
        Secretary, the following:
                    ``(A) An agreement or other assurance that the 
                institution of higher education will provide the non-
                Federal share in accordance with this subsection.
                    ``(B) Information on the specific methods by which 
                the non-Federal share shall be paid.
                    ``(C) An acknowledgment that the non-Federal share 
                provided under this subsection shall supplement and not 
                supplant other Federal and non-Federal funds.
            ``(2) Federal and non-federal shares.--Each institution of 
        higher education participating in the program under this 
        section shall select one of the three contribution percentage 
        tiers described in paragraph (3) for purposes of meeting a 
        percentage of the unmet financial needs of covered individuals 
        enrolled in the institution.
            ``(3) Percentage contribution tiers.--
                    ``(A) 25 percent tier.--In the case of a covered 
                individual enrolled in the institution who has an unmet 
                financial need that is--
                            ``(i) less than $8,000, the non-Federal 
                        share shall be 12.5 percent of the unmet 
                        financial need and the Federal share shall be 
                        12.5 percent of the unmet financial need, 
                        except that the Federal share shall not exceed 
                        $1,000; and
                            ``(ii) equal to or greater than $8,000, the 
                        Federal share shall be $1,000 and the non-
                        Federal share shall be 25 percent of the 
                        covered individual's unmet financial need minus 
                        $1,000.
                    ``(B) 50 percent tier.--In the case of a covered 
                individual enrolled in the institution who has an unmet 
                financial need that is--
                            ``(i) less than $8,000, the non-Federal 
                        share shall be 25 percent of the unmet 
                        financial need and the Federal share shall be 
                        25 percent of the unmet financial need, except 
                        that the Federal share shall not exceed $2,000; 
                        and
                            ``(ii) equal to or greater than $8,000, the 
                        Federal share shall be $2,000 and the non-
                        Federal share shall be 50 percent of the 
                        covered individual's unmet financial need minus 
                        $2,000.
                    ``(C) 100 percent tier.--In the case of a covered 
                individual enrolled in the institution who has an unmet 
                financial need that is--
                            ``(i) less than $6,000, the non-Federal 
                        share shall be 50 percent of the unmet 
                        financial need and the Federal share shall be 
                        50 percent of the unmet financial need, except 
                        that the Federal share shall not exceed $3,000; 
                        and
                            ``(ii) equal to or greater than $6,000, the 
                        Federal share shall be $3,000 and the non-
                        Federal share shall be 100 percent of the 
                        covered individual's unmet financial need minus 
                        $3,000.
    ``(f) Regulations.--The Secretary shall prescribe regulations 
necessary to implement and administer the College Patriots Grant 
Program, including regulations establishing the procedures for 
determining eligibility for the program, applying for supplemental 
educational grants under the program, and distributing the Federal 
share provided by the Secretary under the program.
    ``(g) Outreach.--The Secretary of Veterans Affairs, in coordination 
with the Secretary of Defense and the Secretary of Education, shall--
            ``(1) make available to the public on the Internet website 
        of the Department--
                    ``(A) a current list of institutions of higher 
                education participating in the College Patriots Grant 
                Program; and
                    ``(B) information on the extent of participation of 
                each institution of higher education participating in 
                the College Patriots Grant Program;
            ``(2) make available to the public on the Internet website 
        of the Department information about all Federal and State 
        education benefits that members of the regular components of 
        the Armed Forces, members of the reserve components of the 
        Armed Forces, veterans, and their dependents may be eligible to 
        receive; and
            ``(3) make available to institutions of higher education 
        information about the College Patriots Grant Program and take 
        appropriate actions to encourage broad participation of 
        institutions of higher education in the program.
    ``(h) Awards for Institutional Recognition.--The Secretary may 
establish and administer an awards program to recognize the extent of 
an institution of higher education's participation in the College 
Patriots Grant Program.
    ``(i) Definitions.--In this section:
            ``(1) Cost of attendance.--The term `cost of attendance' 
        has the meaning given the term in section 472 of the Higher 
        Education Act of 1965 (20 U.S.C. 1087ll).
            ``(2) Covered individual.--The term `covered individual' 
        means an individual who--
                    ``(A) is enrolled in an institution of higher 
                education that is participating in the College Patriots 
                Grant Program;
                    ``(B) has such amount of remaining entitlement to 
                educational assistance under chapter 30 or 32 of this 
                title, or under chapter 1606 or 1607 of title 10, as 
                the Secretary may require for purposes of this section; 
                and
                    ``(C) after receipt of any of the educational 
                assistance described in subparagraph (B), has an unmet 
                financial need to attend the institution of higher 
                education for which a supplemental educational grant is 
                sought.
            ``(3) Institution of higher education.--The term 
        `institution of higher education' has the meaning given the 
        term in section 102 of the Higher Education Act of 1965 (20 
        U.S.C. 1002).
            ``(4) Unmet financial need.--The term `unmet financial 
        need' means, with respect to a covered individual, the cost of 
        attendance for the covered individual to attend an institution 
        of higher education participating in the College Patriots Grant 
        Program, minus the sum of--
                    ``(A) grant and work assistance received by the 
                covered individual under title IV of the Higher 
                Education Act of 1965 (20 U.S.C. 1070 et seq.); and
                    ``(B) any educational assistance payments received 
                by the covered individual through any programs 
                administered by the Department of Veterans Affairs or 
                the Department of Defense.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 36 of such title is amended by adding at 
        the end the following new items:

                ``subchapter iv--college patriots grants

``3699A. College Patriots Grant Program.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect one year after the date of the enactment of this Act, and shall 
apply to terms, quarters, or semesters beginning on or after that date.
                                 <all>