[Congressional Record Volume 151, Number 167 (Wednesday, December 21, 2005)]
[Senate]
[Pages S14326-S14328]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. KERRY:
  S. 2163. A bill to amend titles 10 and 38 of the United States Code, 
to increase and index educational benefits for veterans under the 
Montgomery GI bill to ensure adequate and equitable benefits for active 
duty members and members of the selected Reserve, and to include 
certain servicemembers previously excluded from such benefits; to the 
Committee on Veterans' Affairs.
  Mr. KERRY. Mr. President, the original GI Bill of 1944 was intended 
to help veterans readjust to civilian life, and to recognize the 
service they provided to their country. Subsequent GI Bills, including 
the one in force today, have been important tools to recruit the 
world's best troops.
  The GI Bill is meant ``to help meet, in part, the expenses of such 
individual's subsistence, tuition, fees, supplies, books, equipment, 
and other educational costs.'' At certain points historically the 
payment has met over 100 percent of these costs.
  Yet, today's troops, performing with such distinction in Iraq, 
Afghanistan, and other locations around the world, are returning home 
to a GI Bill that covers only 63 percent of the average price of a 
public four-year secondary education.
  Veterans are struggling to make up the difference in the price of 
their education.
  We have heard of a 28-year-old Navy veteran who served two 
deployments in the Persian Gulf between 1996 and 2002. When he went to 
school he had to supplement his GI Bill benefits by working part-time 
as a bartender and taking out tens of thousands of dollars in emergency 
loans.
  We've heard of a veteran who served 4 years in the airborne infantry 
prior to enrolling in a local community college in California under the 
GI Bill. He has been able to make ends meet at the community college by 
subsidizing his GI Bill benefits through part time work, but he worries 
that he will be unable to fulfill his dream of finishing up at UC Davis 
because his benefits and part time job will not cover the higher costs 
at the 4-year public secondary institution.
  But not all veterans are in a position where they can worry only 
about their education. Almost 60 percent of enlisted men and women are 
married today, compared with 40 percent in 1973. These veterans are 
faced with choosing to borrow in order to invest for the future or take 
care of their family now.
  We know of veterans who have lost that fight. One was unable to come 
up with the remaining third of the cost of his education and support 
his wife and baby daughter. His wife had convinced him to use his GI 
Bill benefits, but for this young veteran, ``the benefit just didn't 
match up to the cost of living'' and he dropped out of school after 
only one semester.
  Over the past 10 years, less than 10 percent of eligible veterans who 
signed up for the GI Bill from 1985 to 1994 used their entire 
educational benefit, although 70 percent have used some portion of it.
  The legislation I introduce today is the start of an effort to help 
veterans meet the everincreasing costs of education. It is only a 
start. I recognize that the cost of this proposal has to be addressed 
for the legislation to advance. Toward this end, Senator Ensign and I 
have written to the Veterans' Affairs Committee seeking reauthorization 
of a reporting requirement that will inform this process. And I plan to 
work with my colleagues in the coming months to find a solution that 
meets the needs of America's veterans.
  We know that improving GI Bill benefits isn't just about saying thank 
you. It is critical to recruiting the world's finest military. As 
recently as 2004, a survey of active duty service members found that GI 
Bill education benefits were the primary reason individuals chose to 
enlist. We recently increased sign-up and reenlistment bonuses for 
members of the military. The GI Bill must increase too.
  This legislation, the Armed Forces Education Benefits Improvement 
Act, would increase GI Bill educational benefits to cover the average 
price of a 4-year secondary education. According to the most recent 
report by the U.S. Department of Education, an average public 4-year 
education cost $14,260 in 2004-05, compared with the $9,036 provided 
under the current GI Bill for the same time period.
  The Armed Forces Education Benefits Improvement Act would also 
provide for real growth in future benefits that keep paces with the 
ever increasing cost of education. The bill would index the increased 
benefit to the ``college tuition and fees'' component of the Consumer 
Price Index. Currently, the increasing cost of education is out-pacing 
growth in GI Bill benefits, which are indexed to the less rapidly 
growing overall inflation.
  This legislation would also increase the base amount provided for 
members of the Selected Reserve by approximately 59 percent. And it 
maintains the same ratio in the FY05 Defense Authorization Act for 
those members of the Selected Reserve called up to active duty for at 
least 90 days.

[[Page S14327]]

  Finally, the Armed Forces Education Benefits Improvement Act would 
open' enrollment for updated Montgomery GI bill benefits to certain 
active duty service members who declined to accept the Veterans 
Education Assistance Program, VEAP, offered between January 1, 1977 and 
June 30, 1985. These veterans are the only group of active duty service 
members--other than service academy graduates and recipients of certain 
ROTC scholarships--who have not been able to sign up for GI Bill 
educational benefits.
  I am pleased that this legislation has been endorsed by the Military 
Officers Association of America and the Reserve Enlisted Association.
  I know my colleagues are as inspired as I am by the dedication, 
courage, and honor of the soldiers, sailors, airmen, and Marines we 
meet around the world. They serve with a selfless devotion to their 
country and their mission--and we are all so very proud of them. The 
least that we can do is ensure the GI Bill education benefits keep pace 
with the cost of education in this country. I look forward to working 
with my colleagues over the coming months to bring this legislation to 
fruition.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2163

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Armed Forces Education 
     Benefits Improvement Act''.

     SEC. 2. ADJUSTMENT AND ANNUAL DETERMINATION OF EDUCATIONAL 
                   ASSISTANCE UNDER THE MONTGOMERY GI BILL FOR 
                   ACTIVE DUTY MEMBERS.

       (a) In General.--Section 3015 of title 38, United States 
     Code, is amended--
       (1) in subsection (a), by amending paragraph (1) to read as 
     follows:
       ``(1) for an approved program of education pursued on a 
     full-time basis--
       ``(A) $1,584 per month for months during fiscal year 2005; 
     and
       ``(B) for months during fiscal year 2006 and each 
     subsequent fiscal year, the monthly amount under this 
     paragraph for the previous fiscal year multiplied by the 
     percentage increase calculated under subsection (h); or'';
       (2) in subsection (b), by amending paragraph (1) to read as 
     follows:
       ``(1) for an approved program of education pursued on a 
     full-time basis--
       ``(A) $1,267 per month for months during fiscal year 2005; 
     and
       ``(B) for months during fiscal year 2006 and each 
     subsequent fiscal year, the monthly amount under this 
     paragraph for the previous fiscal year multiplied by the 
     percentage increase calculated under subsection (h); or''; 
     and
       (3) in subsection (h)(1), by striking ``all items'' and 
     inserting ``college tuition and fees''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on the first day of the first month 
     beginning after the date of enactment of this Act.

     SEC. 3. ANALYSIS OF IMPACT OF MONTGOMERY GI BILL EDUCATIONAL 
                   BENEFITS.

       (a) Findings.--Congress finds that--
       (1) the enhanced educational benefits provided under the 
     Ronald W. Reagan National Defense Authorization Act for 
     Fiscal Year 2005 are an important step in ensuring that 
     members of the Selected Reserve are thanked for their 
     increasing role in the modern warfare; and
       (2) when these members return from extended tours in Iraq, 
     Afghanistan, and other places, they should be provided with 
     immediate access to these enhanced educational benefits.
       (b) Cooperation.--The Secretary of Defense shall work 
     expeditiously with the Secretary of Veterans Affairs to 
     ensure that members of the Selected Reserve receive the 
     educational benefits referred to in subsection (a) in a 
     timely manner.
       (c) Studies.--
       (1) Secretary of defense.--The Secretary of Defense shall 
     conduct a study analyzing the effect of all Montgomery GI 
     bill educational benefits on recruitment and retention during 
     the 12-month period beginning on the date on which the 
     enhanced benefits referred to in subsection (a) become 
     available.
       (2) Secretary of veterans affairs.--The Secretary of 
     Veterans Affairs shall conduct a study analyzing the effect 
     of all Montgomery GI bill educational benefits on the 
     readjustment of veterans eligible for educational benefits 
     under section 3015 of title 38, United States Code, and 
     chapters 1606 and 1607 of title 10, United States Code, 
     during the 12-month period beginning on the date on which the 
     enhanced benefits referred to in subsection (a) become 
     available.
       (3) Report.--Not later than 18 months after the date on 
     which the enhanced benefits referred to in subsection (a) 
     become available, the Secretary of Defense and the Secretary 
     of Veterans Affairs shall submit a report on the results of 
     the studies conducted under paragraphs (1) and (2) to--
       (A) the Committee on Armed Services of the Senate;
       (B) the Committee on Armed Services of the House of 
     Representatives;
       (C) the Committee on Veterans' Affairs of the Senate; and
       (D) the Committee on Veterans' Affairs of the House of 
     Representatives.

     SEC. 4. ADJUSTMENT AND ANNUAL DETERMINATION OF EDUCATIONAL 
                   ASSISTANCE UNDER THE MONTGOMERY GI BILL FOR 
                   CERTAIN MEMBERS OF THE SELECTED RESERVE.

       (a) Increase in Rates.--Section 16131(b) of title 10, 
     United States Code, is amended--
       (1) in paragraph (1)--
       (A) by striking ``at the following rates:'' and inserting 
     ``--''; and
       (B) by striking subparagraphs (A) through (C) and inserting 
     the following:
       ``(A) for a program of education pursued on a full-time 
     basis--
       ``(i) $475 per month for months during fiscal year 2005; 
     and
       ``(ii) for months during fiscal year 2006 and each 
     subsequent fiscal year, the monthly amount under this 
     subparagraph for the previous fiscal year multiplied by the 
     percentage increase calculated under paragraph (2);
       ``(B) for a program of education pursued on a three-
     quarter-time basis--
       ``(i) $356 per month for months during fiscal year 2005; 
     and
       ``(ii) for months during fiscal year 2006 and each 
     subsequent fiscal year, the monthly amount under this 
     subparagraph for the previous fiscal year multiplied by the 
     percentage increase calculated under paragraph (2);
       ``(C) for a program of education pursued on a half-time 
     basis--
       ``(i) $238 per month for months during fiscal year 2005; 
     and
       ``(ii) for months during fiscal year 2006 and each 
     subsequent fiscal year, the monthly amount under this 
     subparagraph for the previous fiscal year multiplied by the 
     percentage increase calculated under paragraph (2); and''; 
     and
       (2) in paragraph (2)--
       (A) by inserting ``beginning on or after October 1, 2005'' 
     after ``With respect to any fiscal year''; and
       (B) in subparagraph (A), by striking ``all items'' and 
     inserting ``college tuition and fees''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on the first day of the first month 
     beginning after the date of enactment of this Act.

     SEC. 5. OPPORTUNITY FOR CERTAIN ACTIVE-DUTY PERSONNEL TO 
                   ENROLL UNDER THE MONTGOMERY GI BILL.

       (a) In General.--Chapter 30 of title 38, United States 
     Code, is amended by inserting after section 3018C the 
     following:

     ``Sec. 3018D. Opportunity for certain active-duty personnel 
       to enroll

       ``(a)(1) Notwithstanding any other provision of this 
     chapter, during the 1-year period beginning on the date of 
     enactment of this section, a qualified individual (described 
     in subsection (b)) may make an irrevocable election under 
     this section to receive basic educational assistance under 
     this chapter.
       ``(2) The Secretary of each military department shall 
     provide for procedures for a qualified individual to make an 
     irrevocable election under this section in accordance with 
     regulations prescribed by the Secretary of Defense for the 
     purpose of carrying out this section or which the Secretary 
     of Homeland Security shall provide for such purpose with 
     respect to the Coast Guard when it is not operating as a 
     service in the Navy.
       ``(b) A qualified individual referred to in subsection (a) 
     is an individual who meets each of the following 
     requirements:
       ``(1) The individual first became a member of the Armed 
     Forces or first served on active duty as a member of the 
     Armed Forces before July 1, 1985.
       ``(2) The individual--
       ``(A) has served on active duty without a break in service 
     since the date the individual first became such a member or 
     first served on active duty as such a member; and
       ``(B) continues to serve on active duty for some or all of 
     the 1-year period described in subsection (a).
       ``(3) The individual, before applying for benefits under 
     this section--
       ``(A) completed the requirements of a secondary school 
     diploma (or equivalency certificate); or
       ``(B) has successfully completed (or otherwise received 
     academic credit for) the equivalent of 12 semester hours in a 
     program of education leading to a standard college degree.
       ``(4) The individual, when discharged or released from 
     active duty, is discharged or released therefrom with an 
     honorable discharge.
       ``(c)(1) Subject to paragraph (2), with respect to a 
     qualified individual who elects under this section to receive 
     basic educational assistance under this chapter--
       ``(A) the basic pay of the qualified individual shall be 
     reduced (in a manner determined by the Secretary concerned) 
     until the total amount by which such basic pay is reduced is 
     $1,200; and
       ``(B) to the extent that basic pay is not reduced under 
     subparagraph (A) before the qualified individual's discharge 
     or release from active duty, an amount equal to the 
     difference between $1,200 and the total amount of reductions 
     under subparagraph (A), which shall be paid into the Treasury 
     of

[[Page S14328]]

     the United States as miscellaneous receipts, shall, at the 
     election of the qualified individual, be--
       ``(i) collected from the qualified individual by the 
     Secretary concerned; or
       ``(ii) withheld from the retired or retainer pay of the 
     qualified individual by the Secretary concerned.
       ``(2)(A) The Secretary concerned shall provide for an 18-
     month period, beginning on the date the qualified individual 
     makes an election under this section, for the qualified 
     individual to pay that Secretary the amount due under 
     paragraph (1).
       ``(B) Nothing in subparagraph (A) shall be construed as 
     modifying the period of eligibility for and entitlement to 
     basic educational assistance under this chapter applicable 
     under section 3031 of this title.
       ``(d) With respect to qualified individuals referred to in 
     subsection (c)(1)(B), no amount of educational assistance 
     allowance under this chapter shall be paid to the qualified 
     individual until the earlier of the date on which--
       ``(1) the Secretary concerned collects the applicable 
     amount under subsection (c)(1)(B)(i); or
       ``(2) the retired or retainer pay of the qualified 
     individual is first reduced under subsection (c)(1)(B)(ii).
       ``(e) The Secretary, in conjunction with the Secretary of 
     Defense, shall provide for notice of the opportunity under 
     this section to elect to become entitled to basic educational 
     assistance under this chapter.''.
       (b) Conforming Amendments.--Section 3017(b)(1) of title 38, 
     United States Code, 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 inserting ``or 3018D(c)'' after 
     ``under section 3018C(e)''.
       (c) Clerical Amendment.--The table of sections at the 
     beginning of chapter 30 of title 38, United States Code, is 
     amended by inserting after the item relating to section 3018C 
     the following:

``3018D. Opportunity for certain active-duty personnel to enroll.''.
                                 ______