[House Report 116-164]
[From the U.S. Government Publishing Office]


116th Congress }                                             { Report
                        HOUSE OF REPRESENTATIVES
 1st Session   }                                             { 116-164

======================================================================

 
     RYAN KULES SPECIALLY ADAPTIVE HOUSING IMPROVEMENT ACT OF 2019

                                _______
                                

 July 22, 2019.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Takano, from the Committee on Veterans' Affairs, submitted the 
                               following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 3504]

    The Committee on Veterans' Affairs, to whom was referred 
the bill (H.R. 3504) to amend title 38, United States Code, to 
provide for improvements to the specially adapted housing 
program of the Department of Veterans Affairs, and for other 
purposes, having considered the same, report favorably thereon 
with amendments and recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     6
Background and Need for Legislation..............................     7
Hearings.........................................................     9
Subcommittee Consideration.......................................    10
Committee Consideration..........................................    10
Committee Votes..................................................    10
Committee Oversight Findings.....................................    10
Statement of General Performance Goals and Objectives............    10
New Budget Authority, Entitlement Authority, and Tax Expenditures    11
Earmarks and Tax and Tariff Benefits.............................    11
Committee Cost Estimate..........................................    11
Congressional Budget Office Estimate.............................    11
Federal Mandates Statement.......................................    11
Advisory Committee Statement.....................................    11
Constitutional Authority Statement...............................    11
Applicability to Legislative Branch..............................    12
Statement on Duplication of Federal Programs.....................    12
Disclosure of Directed Rulemaking................................    12
Section-by-Section Analysis of the Legislation...................    12
Changes in Existing Law Made by the Bill as Reported.............    13
Minority Views...................................................    36

    The amendments are as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Ryan Kules Specially Adaptive Housing 
Improvement Act of 2019''.

SEC. 2. PRIORITY IN AWARD OF SPECIALLY ADAPTED HOUSING GRANTS TO 
                    SERIOUSLY ILL VETERANS.

  (a) In General.--Section 2101 of title 38, United States Code, is 
amended by adding at the end the following new subsection:
  ``(d) Priority for Seriously Ill Veterans.--(1) In providing 
assistance under this section, the Secretary shall give priority to 
seriously ill veterans.
  ``(2) In this section, the term `seriously ill veteran' shall have 
the meaning given such term by the Secretary.''.
  (b) Definition of Seriously Ill Veteran.--
          (1) In general.--By not later than 90 days after the date of 
        the enactment of this Act, the Secretary of Veterans Affairs 
        shall--
                  (A) determine the meaning of the term ``seriously ill 
                veteran'' for purposes of subsection (d) of section 
                2101 of title 38, United States Code, as added by 
                subsection (a); and
                  (B) submit to the Committees on Veterans' Affairs of 
                the Senate and House of Representatives the meaning of 
                such term as so determined.
          (2) Applicability.--The definition of ``seriously ill 
        veteran'' as determined under paragraph (1) shall apply for 
        purposes of such subsection (d) beginning on the date that is 
        30 days after the date on which the Secretary submits to the 
        Committees on Veterans' Affairs of the Senate and House of 
        Representatives the definition of such term as so determined.
  (c) Effective Date.--The amendment made by subsection (a) shall take 
effect on October 1, 2020, and apply with respect to assistance 
provided on or after that date.

SEC. 3. INCREASE IN AMOUNTS OF ASSISTANCE PROVIDED.

  (a) Increase of Number of Grants Per Veteran.--Section 2102(d)(3) of 
such title is amended by striking ``three'' and inserting ``six''.
  (b) Increase in Number of Applications Authorized to Be Approved.--
Section 2101(a)(4) of such title is amended by striking ``30 
applications'' and inserting ``120 applications''.
  (c) Increase in Maximum Amount of Assistance for Adaptation to 
Veteran's Residence.--Section 2102(b)(2) of such title is amended by 
striking ``$12,000'' and inserting ``$19,733''.
  (d) Increase in Aggregate Amount of Assistance for Acquisition of 
Housing With Special Features.--Section 2102(d)(1) of such title is 
amended by striking ``$63,780'' and inserting ``$98,492''.
  (e) Increase in Aggregate Amount of Assistance for Adaptations to 
Veterans' Residences.--Section 2102(d)(2) of such title is amended by 
striking ``$12,756'' and inserting ``$19,733''.
  (f) Effective Date and Application.--The amendments made by this 
section shall take effect on October 1, 2020. The amendments made by 
subsections (c) and (d) shall apply with respect to individuals who 
have not received the maximum amount of assistance under section 2101 
of title 38, United States Code, before such date.

SEC. 4. PROVISION OF ADDITIONAL AMOUNTS OF SPECIALLY ADAPTED HOUSING 
                    ASSISTANCE FOR CERTAIN VETERANS.

  Section 2102 of such title is amended by adding at the end the 
following new subsection:
  ``(f)(1) Notwithstanding the aggregate amounts specified in 
subsection (d), a covered veteran may apply for and receive an 
additional amount of assistance under subsection (a) or (b) of section 
2101 of this title in an amount that does not exceed half of the amount 
specified in subsection (d).
  ``(2) In this subsection, a covered veteran is a veteran who--
          ``(A) is described in section 2101(a)(2) of this title;
          ``(B) first receives assistance under this chapter on or 
        after October 1, 2020;
          ``(C) as of the date of the veteran's application for 
        assistance under paragraph (1), most recently received 
        assistance under this chapter more than ten years before such 
        date; and
          ``(D) lives in a home that the Secretary determines does not 
        have adaptations that are reasonably necessary because of the 
        veteran's disability.''.

SEC. 5. IMPROVEMENT TO WORK-STUDY ALLOWANCE PROGRAM.

  (a) Payment of Allowance.--Subsection (a) of section 3485 of title 
38, United States Code, is amended--
          (1) in paragraph (1), by striking ``Individuals'' and 
        inserting ``In accordance with paragraph (4), individuals'';
          (2) by redesignating paragraphs (4), (5), and (6) as 
        paragraphs (5), (6), and (7), respectively; and
          (3) by inserting after paragraph (3) the following new 
        paragraph:
  ``(4)(A) The Secretary shall carry out this section by providing to 
educational institutions an annual amount for the institution to use in 
paying work-study allowance under paragraph (1) to individuals enrolled 
at the institution.
  ``(B) With respect to an educational institution that participated in 
the work-study program under this section during the academic year 
beginning August 1, 2018, the Secretary shall determine the annual 
amount to provide to the educational institution under subparagraph (A) 
as follows:
          ``(i) For the academic year beginning August 1, 2020, the 
        amount shall be the total amount the Secretary paid under this 
        section to individuals enrolled at such educational institution 
        during the academic year beginning August 1, 2018.
          ``(ii) Except as provided by subparagraph (D)(ii), for each 
        academic year beginning on or after August 1, 2021, the amount 
        shall be the total amount the educational institution paid 
        under this section for work-study allowance to individuals 
        enrolled at such educational institution during the previous 
        academic year in which individuals participated in the work-
        study program.
  ``(C) With respect to an educational institution that did not 
participate in the work-study program under this section during the 
academic year beginning August 1, 2018, the Secretary shall determine 
the annual amount to provide to the educational institution under 
subparagraph (A) as follows:
          ``(i) For the first academic year in which the educational 
        institution participates in the work-study program beginning on 
        or after August 1, 2020, the amount shall be an amount the 
        Secretary determines appropriate based on amounts provided to 
        similar educational institutions pursuant to subparagraph (B).
          ``(ii) Except as provided by subparagraph (D)(ii), for each 
        academic year occurring after the academic year specified in 
        clause (i), the amount shall be the total amount the 
        educational institution paid under this section for work-study 
        allowance to individuals enrolled at such educational 
        institution during the previous academic year in which 
        individuals enrolled at such educational institution 
        participated in the work-study program.
  ``(D)(i) Except as provided in clause (ii), if the Secretary provides 
an annual amount to an educational institution under subparagraph (B) 
or (C) that is more than the total amount the educational institution 
pays to individuals under paragraph (1), the educational institution 
shall return to the Secretary the unpaid amount and the Secretary shall 
transfer such amount into the general fund of the Treasury.
  ``(ii) If the annual amount provided to an educational institution 
under subparagraph (B) or (C) is more, but less than 25 percent more, 
than the total amount the educational institution pays to individuals 
under paragraph (1), and the educational institution plans to 
participate in the work-study program under this section during the 
subsequent academic year, the educational institution may retain the 
amount of the overpayment if the educational institution notifies the 
Secretary of the amount of the overpayment and the intention of the 
educational institution to retain such amount. Any amount retained by 
an educational institution under this clause may only be used by the 
educational institution to provide work-study allowance to individuals 
enrolled at the educational institution.
  ``(iii) At any time an educational institution may request the 
Secretary to increase the annual amount that the Secretary provides the 
educational institution under subparagraph (B) or (C).
  ``(E) Pursuant to section 3690(c), section 3693, and other provisions 
of chapter 36 of this title, the Secretary shall ensure that 
educational institutions carry out the work-study allowance program in 
compliance with this section.''.
  (b) Conforming Amendment.--Subsection (e)(1) of such section is 
amended by striking ``subsection (a)(4)'' and inserting ``subsection 
(a)(5)''.
  (c) Application.--The amendments made by this section shall apply 
with respect to a quarter, semester, or term, as applicable, commencing 
on or after August 1, 2020.

SEC. 6. EXPANSION OF ELIGIBILITY FOR FRY SCHOLARSHIP TO CHILDREN AND 
                    SPOUSES OF CERTAIN DECEASED MEMBERS OF THE ARMED 
                    FORCES.

  (a) In General.--Subsection (b) of section 3311 of title 38, United 
States Code, is amended--
          (1) by redesignating paragraph (10) as paragraph (12); and
          (2) by inserting after paragraph (9) the following new 
        paragraphs (10) and (11):
          ``(10) An individual who is the child or spouse of a person 
        who, on or after September 11, 2001, dies in line of duty while 
        serving on duty other than active duty as a member of the Armed 
        Forces.
          ``(11) An individual who is the child or spouse of a member 
        of the Selected Reserve who dies on or after September 11, 
        2001--
                  ``(A) from a service-connected disability; and
                  ``(B) not later than four years after the date of the 
                last discharge or release of that member from active 
                duty or active duty for training.''.
  (b) Applicability Date.--The amendments made by subsection (a) apply 
with respect to a quarter, semester, or term, as applicable, commencing 
on or after August 1, 2020.
  (c) Conforming Amendments.--
          (1) Subsection (f) of such section is amended by striking 
        ``paragraph (9)'' each place it appears and inserting 
        ``paragraphs (9), (10), and (11)''.
          (2) Section 3322 of such title is amended--
                  (A) in subsection (e), by striking both ``sections 
                3311(b)(9) and 3319'' and inserting ``section 3319 and 
                paragraph (9), (10), or (11) of section 3311 of this 
                title'';
                  (B) in subsection (f), by striking ``section 
                3311(b)(9)'' and inserting ``paragraph (9), (10), or 
                (11) of section 3311 of this title''; and
                  (C) in subsection (h)(2), by striking ``either 
                section 3311(b)(9) or chapter 35'' and inserting 
                ``either chapter 35 or paragraph (9), (10), or (11) of 
                section 3311''.

SEC. 7. TREATMENT OF CERTAIN PREPARATORY COURSES AS PROGRAMS OF 
                    EDUCATION FOR PURPOSES OF DEPARTMENT OF VETERANS 
                    AFFAIRS EDUCATIONAL ASSISTANCE PROGRAMS.

  (a) In General.--Chapter 33 of title 38, United States Code, is 
amended by inserting after section 3315A the following new section:

``Sec. 3315B. Preparatory courses for licensure, certification, or 
                    national tests

  ``(a) In General.--An individual entitled to educational assistance 
under this chapter shall also be entitled to payment for a preparatory 
course for a licensing or certification test that is required or used 
to enter into, maintain, or advance in employment in a predetermined 
and identified vocation or profession.
  ``(b) Amount.--The amount of educational assistance payable under 
this chapter for a course described in subsection (a) is the lesser 
of--
          ``(1) the fee charged for the course; or
          ``(2) the amount of entitlement available to the individual 
        under this chapter at the time of payment for the course under 
        this section.
  ``(c) Charge Against Entitlement.--The number of months of 
entitlement charged an individual under this chapter for a course 
described in subsection (a) shall be pro-rated based on the actual 
amount of the fee charged for the course relative to the rate for 1 
month payable--
          ``(1) for the academic year beginning on August 1, 2020, 
        $1,460; or
          ``(2) for an academic year beginning on any subsequent August 
        1, the amount for the previous academic year beginning on 
        August 1 under this subsection, as increased by the percentage 
        increase equal to the most recent percentage increase 
        determined under section 3015(h).''.
  (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
3315A the following new item:

``3315B. Preparatory courses for licensure, certification, or national 
tests.''.

  (c) Conforming Amendments.--Section 3532(g) of title 38, United 
States Code, is amended--
          (1) in paragraph (1), by inserting ``or a preparatory course 
        described in section 3315B(a) of this title'' after ``or 
        national test providing an opportunity for course credit at 
        institutions of higher learning described in section 3501(a)(5) 
        of this title''; and
          (2) in paragraphs (2) and (3), by inserting ``or preparatory 
        course'' after ``test'' everywhere it appears.
  (d) Effective Date.--The amendment made by subsection (a) shall apply 
with respect to months beginning after the date of the enactment of 
this Act.

SEC. 8. ADJUSTMENT OF LOAN FEES.

  Section 3729(b)(2) of title 38, United States Code, is amended by 
striking the loan fee table and inserting the following:


----------------------------------------------------------------------------------------------------------------
                                                       Active duty
                  ``Type of loan                         veteran             Reservist          Other  obligor
----------------------------------------------------------------------------------------------------------------
(A)(i) Initial loan described in section 3710(a)   2.15                 2.40                 NA
 to purchase or construct a dwelling with 0-down,
 or any other initial loan described in section
 3710(a) other than with 5-down or 10-down
 (closed on or after October 1, 2004, and before
 January 1, 2020)
(A)(ii) Initial loan described in section 3710(a)  2.30                 2.30                 NA
 to purchase or construct a dwelling with 0-down,
 or any other initial loan described in section
 3710(a) other than with 5-down or 10-down
 (closed on or after January 1, 2020, and before
 October 1, 2027)
(A)(iii) Initial loan described in section         2.15                 2.15                 NA
 3710(a) to purchase or construct a dwelling with
 0-down, or any other initial loan described in
 section 3710(a) other than with 5-down or 10-
 down (closed on or after October 1, 2027, and
 before October 1, 2029)
(A)(iv) Initial loan described in section 3710(a)  1.40                 1.40                 NA
 to purchase or construct a dwelling with 0-down,
 or any other initial loan described in section
 3710(a) other than with 5-down or 10-down
 (closed on or after October 1, 2029)
(B)(i) Subsequent loan described in section        3.30                 3.30                 NA
 3710(a) to purchase or construct a dwelling with
 0-down, or any other subsequent loan described
 in section 3710(a) (closed on or after October
 1, 2004, and before January 1, 2020)
(B)(ii) Subsequent loan described in section       3.60                 3.60                 NA
 3710(a) to purchase or construct a dwelling with
 0-down, or any other subsequent loan described
 in section 3710(a) (closed on or after January
 1, 2020, and before October 1, 2027)
(B)(iii) Subsequent loan described in section      3.30                 3.30                 NA
 3710(a) to purchase or construct a dwelling with
 0-down, or any other subsequent loan described
 in section 3710(a) (closed on or after October
 1, 2027, and before October 1, 2029)
(B)(iv) Subsequent loan described in section       1.25                 1.25                 NA
 3710(a) to purchase or construct a dwelling with
 0-down, or any other subsequent loan described
 in section 3710(a) (closed on or after October
 1, 2029)
(C)(i) Loan described in section 3710(a) to        1.50                 1.75                 NA
 purchase or construct a dwelling with 5-down
 (closed before January 1, 2020)
(C)(ii) Loan described in section 3710(a) to       1.65                 1.65                 NA
 purchase or construct a dwelling with 5-down
 (closed on or after January 1, 2020, and before
 October 1, 2027)
(C)(iii) Loan described in section 3710(a) to      1.50                 1.50                 NA
 purchase or construct a dwelling with 5-down
 (closed on or after October 1, 2027, and before
 October 1, 2029)
(C)(iv) Loan described in section 3710(a) to       0.75                 0.75                 NA
 purchase or construct a dwelling with 5-down
 (closed on or after October 1, 2029)
(D)(i) Loan described in section 3710(a) to        1.25                 1.50                 NA
 purchase or construct a dwelling with 10-down
 (closed before January 1, 2020)
(D)(ii) Loan described in section 3710(a) to       1.40                 1.40                 NA
 purchase or construct a dwelling with 10-down
 (closed on or after January 1, 2020, and before
 October 1, 2027)
(D)(iii) Loan described in section 3710(a) to      1.25                 1.25                 NA
 purchase or construct a dwelling with 10-down
 (closed on or after October 1, 2027, and before
 October 1, 2029)
(D)(iv) Loan described in section 3710(a) to       0.50                 0.50                 NA
 purchase or construct a dwelling with 10-down
 (closed on or after October 1, 2029)
(E) Interest rate reduction refinancing loan       0.50                 0.50                 NA
(F) Direct loan under section 3711                 1.00                 1.00                 NA
(G) Manufactured home loan under section 3712      1.00                 1.00                 NA
 (other than an interest rate reduction
 refinancing loan)
(H) Loan to Native American veteran under section  1.25                 1.25                 NA
 3762 (other than an interest rate reduction
 refinancing loan)
(I) Loan assumption under section 3714             0.50                 0.50                 0.50
(J) Loan under section 3733(a)                     2.25                 2.25                 2.25''.
----------------------------------------------------------------------------------------------------------------

SEC. 9. AUTHORITY OF SECRETARY OF VETERANS AFFAIRS TO ASSIST BLIND 
                    VETERANS WHO HAVE NOT LOST USE OF A LEG IN 
                    ACQUIRING SPECIALLY ADAPTED HOUSING.

  Section 2101 of title 38, United States Code, is amended--
          (1) in subsection (a)(2)(B)(ii)--
                  (A) in the matter preceding subclause (I), by 
                striking ``due to--'' and inserting ``due to blindness 
                in both eyes, having central visual acuity of 20/200 or 
                less in the better eye with the use of a standard 
                correcting lens. For the purposes of this clause, an 
                eye with a limitation in the fields of vision such that 
                the widest diameter of the visual field subtends an 
                angle no greater than 20 degrees shall be considered as 
                having a central visual acuity of 20/200 or less.''; 
                and
                  (B) by striking subclauses (I) and (II); and
          (2) in subsection (b)(2)--
                  (A) by striking subparagraph (A); and
                  (B) by redesignating subparagraphs (B) and (C) as 
                subparagraphs (A) and (B), respectively.

    Amend the title so as to read:
    A bill to amend title 38, United States Code, to provide 
for improvements to the specially adapted housing program and 
educational assistance programs of the Department of Veterans 
Affairs, and for other purposes.

                          Purpose and Summary

    H.R. 3504, the ``Ryan Kules Specially Adaptive Housing 
Improvement of 2019,'' was introduced by Representative Gus 
Bilirakis, the Ranking Member of the Subcommittee on Economic 
Opportunity, on June 29, 2019. Representative Mike Levin, the 
Chairman of the Subcommittee on Economic Opportunity, joined 
Mr. Bilirakis as an original cosponsor of the legislation. H.R. 
3504 makes several improvements to the specially adapted (SAH) 
grant program administered by the Department of Veterans' 
Affairs (VA). The legislation does this by prioritizing grants 
to seriously ill veterans, raising the cap on the total number 
of grants issued to a veteran, increasing the total 
applications authorized for a year from 30 to 120, increasing 
the maximum benefit from $63,780 to $98,492, and allowing 
veterans to reapply for SAH grants ten years after they exhaust 
their grants.
    H.R. 3504, as amended, would authorize institutions of 
higher learning to directly pay participants in the VA work-
study program, authorize veterans to use their education 
entitlement to take preparatory courses for vocational or 
professional licensure, increase the VA home loan funding fees 
from 2022 to 2027, and expand eligibility for the Fry 
Scholarship to include children and spouses of reservist and 
guardsmen who died in the line of duty or from service 
connected injuries or illness within four years of the deceased 
veteran's last separation date.
    H.R. 3504, as amended, would also expand the eligibility 
for able-bodied blind veterans to receive SAH program grants.

                  Background and Need for Legislation

    Prior to the creation of the Veterans Administration in 
1930, Congress understood the need to provide care for disabled 
veterans. In 1865, Congress created the National Home for 
Disabled Volunteer Soldiers to provide support for veterans of 
the Civil War, and ensuing wars, who could not support 
themselves due to disability. The National Home for Disabled 
Volunteer Soldiers was the first Congressionally mandated 
specially adapted facilities for veterans. The Specially 
Adapted Housing (SAH) Program, which allowed veterans to 
purchase homes with accessibility modification was introduced 
in 1948 (P.L. 80-702) after the inception of the Veterans 
Administration. The SAH program allowed the Veterans 
Administration to provide more support for disabled veterans 
around the country without the veterans having to move a 
domiciliary. The program initially targeted veterans with a 
total service-connected disability from the loss of or use of 
both lower extremities.
    Over the years, Congress amended the law to expand the 
range of disabilities eligible for assistance. In 1959, 
Congress expanded eligibility to veterans who were blind but 
still have use of one leg (P.L. 86-239), to those who require 
the aid of braces, crutches, canes, or a wheelchair for 
mobility (P.L. 86-239), to those who lost the use of one upper 
extremity (P.L. 95-117), and to those with severe burn injuries 
that reduce mobility in two or more extremities (P.L. 110-289).
    Thanks to advancements in medical technology, more veterans 
are surviving the grave injuries and severe trauma from combat 
zones, but many who survive have life-changing disabilities 
that evolve and change over time. With proper medical treatment 
veterans can survive for decades with their disabilities, like 
retired Army Captain Ryan Kules, the namesake of H.R. 3504.
    H.R. 3504 seeks to correct the gaps in the SAH program that 
Kules and many other disabled veterans have encountered. Under 
the current statute, section 2101, title 38 of U.S. Code 
(U.S.C), veterans who meet the SAH grants cap when modifying 
their home cannot be awarded additional SAH grants to modify 
another house should they move or add any additional 
modifications to their current residence.
    The Committee is concerned that Congress is failing in its 
task to provide adequate housing for disabled veterans. 
Currently, the SAH program, administered by the VA Loan 
Guaranty Service, provides grants capped at only $64,000 and 
limits the number of grants to modify a home to accommodate a 
veteran's service-connected disabilities (38 U.S.C section 
2102(d)(3).
    H.R. 3504 would authorize the Secretary of Veterans Affairs 
to increase funding for the SAH grant program, increase the 
number of authorized SAH program grants, prioritize severely 
ill and disabled veterans in the SAH grant application process, 
expand eligibility for blind veterans who have two working 
legs, and allow veterans to reapply for SAH grant after ten 
years.

Section 5. Improvement to work-study allowance program

    For years, the VA work-study program, established by P.L. 
92-540, has paired veterans with jobs in their school or at 
local VA facilities, allowing them to focus on their studies 
and earn extra money. However, VA's increasing inability to 
process work-study benefits in a consistent or timely manner 
means that some students are now waiting weeks without getting 
paid for their work.
    This section amends section 3485, title 38, U.S.C. to 
authorize VA to pay schools a lump sum for all students 
participating in the VA work-study program and requires that 
schools then pay students for participating in the VA work-
study program. This aligns the VA work-study program with the 
federal work-study program administered by the Department of 
Education (P.L. 89-329), which has the same funding 
disbursement method.

Section 6. Expansion of eligibility for Fry Scholarship to children and 
        spouses of certain deceased members of the Armed Forces

    Currently section 3311(b), title 38, U.S.C does not have 
parity between children and spouses of active duty members of 
the Armed Forces and children and spouses of reservist and 
members of the national guardsmen in terms of eligibility for 
the Fry Scholarship. Dependents of reservist and national 
guardsmen who die while on duty, but not while on active duty 
are not eligible for the Fry Scholarship. Further, dependents 
of reservist and national guardsmen who die from service-
connected injuries and illnesses within four years from their 
last discharge date are ineligible for Fry Scholarship, despite 
active duty military dependents being eligible for the Fry 
Scholarship in the former and latter scenarios.
    This section creates parity between children and spouses of 
active duty members of the Armed Forces and children and 
spouses of reservists and members of the national guard.

Section 7. Treatment of certain preparatory courses as program of 
        education for purposes of Department of Veterans Affairs 
        Educational Assistance Programs

    This section amends Chapter 33 of title 38 U.S.C. to allow 
the benefits to cover the cost of approved preparatory courses 
for professional license and certification exams. By covering 
these courses under the GI Bill, veterans and their eligible 
family members will have better access to the support they need 
to enter in-demand careers in health care, teaching, 
technology, and other fields that may require government-
recognized licenses and certifications.

Section 8. Adjustment of loan fees

    This section amends Section 3729(b)(2) to extend the 
existing VA housing loans fees from 2022 to 2027.

Section 9. Authority of Secretary of Veterans Affairs to assist blind 
        veterans who have not lost use of a leg in acquiring Specially 
        Adapted Housing

    Currently, only veterans who meet one or more seven narrow 
categories of disability are eligible for SAH grants. In 38 
U.S.C. section 2101, blind veterans are only eligible for 
grants if they have also lost the use of one or both legs. This 
means that VA must turn away blind veterans in need of housing 
assistance for the sole reason that they have use of both legs.
    This section alters section 2101, title 38, U.S.C to expand 
the eligibility for able bodied blind veterans to receive SAH 
program resources.

                                Hearings

    For the purposes of section 103(i) of H. Res. 6 of the 
116th Congress--the following hearings and meetings were used 
to develop or consider H.R. 3504.
    On June 20, 2019, the Committee on Veterans' Affairs 
conducted a legislative hearing on various bills introduced 
during the 116th Congress, including H.R. 3504.
    The following witnesses testified:
    The Honorable Gilbert Cisneros, Member of Congress. The 
Honorable Seth Moulton, Member of Congress. The Honorable Luis 
Correa, Member of Congress. The Honorable Earl Blumenauer, 
Member of Congress. The Honorable Phil Roe, Member of Congress. 
The Honorable Scott Tipton, Member of Congress. Mr. Adrian 
Atizado, Deputy National Legislative Director, Disabled 
American Veterans. Mr. Travis Horr, Director, Government 
Affairs, Iraq and Afghanistan Veterans of America. Dr. Igor 
Grant, M.D., F.R.C.P.(C), Director, Center for Medicinal 
Cannabis Research, University of California. Mr. Carlos 
Fuentes, Director, National Legislative Service, Veterans of 
Foreign Wars. Mr. Derek Fronabarger, Director, Government 
Affairs, Wounded Warrior Project. Mr. Larry Mole, BA, PharmD, 
Chief Consultant, Population Health Services, Patient Care 
Services, Veterans Health Administration.
    Statements for the record were submitted by:
    Ms. Thelma Roach-Serry, BSN, RN, NE-BC, President, Nurses 
Organization of Veterans Affairs (NOVA). Mr. Eric Goepel, 
Founder & CEO, Veterans Cannabis Coalition (VCC). Mr. Morgan D. 
Brown, National Legislative Director, Paralyzed Veterans of 
America (PVA). Mr. J. David Cox, Sr., National President, 
American Federation of Government Employees (AFGE). Mr. Randy 
Erwin, National President, National Federation of Federal 
Employees (NFFE). Mr. William Attig, Executive Director, Union 
Veterans Council, AFL-CIO. Mr. Brett W. Copeland, Executive 
Director, Veterans Healthcare Policy Institute. Mr. David J. 
Holway, National Association of Government Employees (NAGE). 
Mr. Justin Strekal, Political Director, National Organization 
for the Reform of Marijuana Laws--(NORML).

                       Subcommittee Consideration

    H.R. 3504 was not considered in subcommittee.

                        Committee Consideration

    On July 11, 2019, the Committee on Veterans' Affairs met in 
an open markup session, a quorum being present, and ordered 
H.R. 3504, as amended, reported favorably to the House of 
Representatives by voice vote. During the July 11, 2019 
consideration, the Committee considered an A.N.S. to H.R. 3504 
offered by Rep. Bilirakis of Florida. An amendment to the 
A.N.S. to H.R. 3504 offered by Rep. Sablan of the Northern 
Mariana Islands was adopted by voice vote. An amendment to the 
A.N.S. to H.R. 3504 offered by Rep. Luria of Virginia was 
adopted by voice vote. The A.N.S. to H.R. 3504 was adopted by 
voice vote, and H.R. 3504, as amended was agreed to by voice 
vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the recorded 
votes on the motion to report the legislation and amendments 
thereto. Mr. Sablan's amendment to H.R. 3504 to add a new 
entitlement for the payment of preparatory courses was agreed 
to by voice vote. Ms. Luria's amendment to H.R. 3504 to expand 
SAH benefits to blind veterans who have not lost use of a leg, 
was agreed to by voice vote. Mr. Bilirakis's A.N.S. was agreed 
to by voice vote, and a motion by Ranking Member Phil Roe of 
Tennessee to report H.R. 3504, as amended favorably to the 
House of Representatives was agreed to by voice vote. There 
were no recorded votes on the consideration of amendments or on 
reporting H.R. 3504 as amended to the House.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the descriptive portions of 
this report.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals and objectives are to improve the living conditions of 
disabled veterans by increasing funding and eligibility to the 
SAH program, increase economic opportunities for children and 
spouses of decreased service members by expanding eligibility 
of the Fry Scholarship, increase economic opportunities for 
veterans by authorizing veterans to use educational 
entitlements to pay for vocational and professional licensure 
preparatory classes, and reduce financial instability of 
student veterans by authorizing higher education institutions 
to individuals participating in the VA work-study program.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee adopts as its 
own the estimate of new budget authority, entitlement 
authority, or tax expenditures or revenues contained in the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act of 1974.

                  Earmarks and Tax and Tariff Benefits

    H.R. 3504, as amended, does not contain any Congressional 
earmarks, limited tax benefits, or limited tariff benefits as 
defined in clause 9 of rule XXI of the Rules of the House of 
Representatives.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate on H.R. 
3504, as amended, prepared by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act of 1974.

               Congressional Budget Office Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause (3)(c)(3) of rule XIII of the Rules 
of the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has requested 
but not received a cost estimate for this bill from the 
Director of Congressional Budget Office. The Committee has 
requested but not received from the Director of the 
Congressional Budget Office a statement as to whether this bill 
contains any new budget authority, spending authority, credit 
authority, or an increase or decrease in revenues or tax 
expenditures.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates regarding H.R. 3504, as amended, prepared by the 
Director of the Congressional Budget Office pursuant to section 
423 of the Unfunded Mandates Reform Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act would be created by H.R. 
3504, as amended.

                   Constitutional Authority Statement

    Pursuant to Article I, section 8 of the United States 
Constitution, H.R. 3504, as amended, is authorized by Congress' 
power to ``provide for the common Defense and general Welfare 
of the United States.''

                  Applicability to Legislative Branch

    The Committee finds that H.R. 3504, as amended, does not 
relate to the terms and conditions of employment or access to 
public services or accommodations within the legislative 
branch.

              Statement on Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that no provision 
of H.R. 3504, as amended, establishes or reauthorizes a program 
of the Federal Government known to be duplicative of another 
Federal program, a program that was included in any report from 
the Government Accountability Office to Congress pursuant to 
section 21 of Public Law 111 139, or a program related to a 
program identified in the most recent Catalog of Federal 
Domestic Assistance.

                   Disclosure of Directed Rulemaking

    Pursuant to clause 3(c)(5) of rule XIII, the Committee 
estimates that H.R. 3504 contains rulemaking to require the 
Secretary to prescribe regulations regarding the definition of 
``seriously ill veteran.''

             Section-by-Section Analysis of the Legislation

    Section 1: Short title: Section one would establish the 
short title ``Ryan Kules Specially Adaptive Housing Improvement 
Act of 2019''.
    Section 2: Would prioritize the awarding of SAH grants to 
``seriously ill veterans''. The Secretary must define the term 
``seriously ill veterans'' and report the definition to the 
committees of jurisdiction.
    The effective date of this section is October 1, 2020.
    Section 3: Would increase the number of grants veterans can 
apply for from 3 to 6. It would increase the number of 
applications that can be approved from 30 to 120. It would 
increase the maximum amount of assistance for acquiring a 
residence already adapted with special features from $12,000 to 
$19,733. It would also increase the aggregate amount of 
assistance for the acquisition of housing with accessible 
features from $63,780 to $98,462. Finally, it would increase 
the aggregate amount of assistance for adaptations to a 
residence owned by a veteran from $12,756 to $19,733. The 
effective date of this section is October 1, 2020.
    Section 4: Would allow veterans who first receive a SAH 
grant on or after October 1, 2020 to reapply for SAH grants 
after ten years, as long as their existing residence does not 
meet their needs.
    Section 5: Would authorize schools, rather than VA, to make 
payments to students for the work they are performing under the 
VA work-study program. VA would provide the schools with batch 
funds to use specifically for this purpose.
    The effective date of this section is August 1, 2020 and 
applies to semester, quarters, or terms starting on or after 
August 1, 2020.
    Section 6: Would expand eligibility of the Fry Scholarship 
to children and spouses of a reservist or national guardsmen 
who died in the line of duty or from a service-connected 
disability within four years after their last discharge date.
    The effective date of this section is August 1, 2020 and 
applies to semester, quarters, or terms starting on or after 
August 1, 2020.
    Section 7: Would authorize veterans to use educational 
benefits to pay for preparatory courses for vocational or 
professional licensure. The amount of entitlement expended at 
the rate of one month per every $1,460 spent on the course.
    Section 8: Would increase VA housing loans fees from 2022 
to 2027.
    Section 9: Would expand eligibility of the SAH grant 
program to include veterans who meet the Social Security 
Administration definition of blindness and have the use of all 
their extremities. Changes the title of the bill to ``A bill to 
amend title 38, United States Code, to provide for improvements 
to the specially adapted housing program and educational 
assistance programs of the Department of Veterans Affairs, and 
for other purposes.''

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

                      TITLE 38, UNITED STATES CODE




           *       *       *       *       *       *       *
PART II--GENERAL BENEFITS

           *       *       *       *       *       *       *


CHAPTER 21--SPECIALLY ADAPTED HOUSING FOR DISABLED VETERANS

           *       *       *       *       *       *       *



Sec. 2101. Acquisition and adaptation of housing: eligible veterans

  (a) Acquisition of Housing With Special Features.--(1) 
Subject to paragraphs (3) and (4), the Secretary may assist a 
disabled veteran described in paragraph (2) in acquiring a 
suitable housing unit with special fixtures or movable 
facilities made necessary by the nature of the veteran's 
disability, and necessary land therefor.
  (2)(A) A veteran is described in this paragraph if the 
veteran--
          (i) is entitled to compensation under chapter 11 of 
        this title for a permanent and total service-connected 
        disability that meets any of the criteria described in 
        subparagraph (B); or
          (ii) served in the Armed Forces on or after September 
        11, 2001, and is entitled to compensation under chapter 
        11 of this title for a permanent service-connected 
        disability that meets the criterion described in 
        subparagraph (C).
  (B) The criteria described in this subparagraph are as 
follows:
          (i) The disability is due to the loss, or loss of 
        use, of both lower extremities such as to preclude 
        locomotion without the aid of braces, crutches, canes, 
        or a wheelchair.
          (ii) The disability is [due to--] due to blindness in 
        both eyes, having central visual acuity of 20/200 or 
        less in the better eye with the use of a standard 
        correcting lens. For the purposes of this clause, an 
        eye with a limitation in the fields of vision such that 
        the widest diameter of the visual field subtends an 
        angle no greater than 20 degrees shall be considered as 
        having a central visual acuity of 20/200 or less.
                  [(I) blindness in both eyes, having only 
                light perception, plus
                  [(II) loss or loss of use of one lower 
                extremity.]
          (iii) The disability is due to the loss or loss of 
        use of one lower extremity together with--
                  (I) residuals of organic disease or injury; 
                or
                  (II) the loss or loss of use of one upper 
                extremity,
which so affect the functions of balance or propulsion as to 
preclude locomotion without the aid of braces, crutches, canes, 
or a wheelchair.
          (iv) The disability is due to the loss, or loss of 
        use, of both upper extremities such as to preclude use 
        of the arms at or above the elbows.
          (v) The disability is due to a severe burn injury (as 
        determined pursuant to regulations prescribed by the 
        Secretary).
  (C) The criterion described in this subparagraph is that the 
disability--
          (i) was incurred on or after September 11, 2001; and
          (ii) is due to the loss or loss of use of one or more 
        lower extremities which so affects the functions of 
        balance or propulsion as to preclude ambulating without 
        the aid of braces, crutches, canes, or a wheelchair.
  (3) The regulations prescribed under subsection (d) shall 
require that assistance under paragraph (1) may be provided to 
a veteran only if the Secretary finds that--
          (A) it is medically feasible for the veteran to 
        reside in the proposed housing unit and in the proposed 
        locality;
          (B) the proposed housing unit bears a proper relation 
        to the veteran's present and anticipated income and 
        expenses; and
          (C) the nature and condition of the proposed housing 
        unit are such as to be suitable to the veteran's needs 
        for dwelling purposes.
  (4) In any fiscal year, the Secretary may not approve more 
than [30 applications] 120 applications for assistance under 
paragraph (1) for disabled veterans described in paragraph 
(2)(A)(ii).
  (b) Adaptations to Residence of Veteran.--(1) Subject to 
paragraph (3), the Secretary shall assist any disabled veteran 
described in paragraph (2) (other than a veteran who is 
eligible for assistance under subsection (a))--
          (A) in acquiring such adaptations to such veteran's 
        residence as are determined by the Secretary to be 
        reasonably necessary because of such disability; or
          (B) in acquiring a residence already adapted with 
        special features determined by the Secretary to be 
        reasonably necessary for the veteran because of such 
        disability.
  (2) A veteran is described in this paragraph if the veteran 
is entitled to compensation under chapter 11 of this title for 
a service-connected disability that meets any of the following 
criteria:
          [(A) The disability is due to blindness in both eyes, 
        having central visual acuity of 20/200 or less in the 
        better eye with the use of a standard correcting lens. 
        For the purposes of this subparagraph, an eye with a 
        limitation in the fields of vision such that the widest 
        diameter of the visual field subtends an angle no 
        greater than 20 degrees shall be considered as having a 
        central visual acuity of 20/200 or less.]
          [(B)] (A) A permanent and total disability that 
        includes the anatomical loss or loss of use of both 
        hands.
          [(C)] (B) A permanent and total disability that is 
        due to a severe burn injury (as so determined).
  (3) Assistance under paragraph (1) may be provided only to a 
veteran who the Secretary determines--
          (A) is residing in and reasonably intends to continue 
        residing in a residence owned by such veteran or by a 
        member of such veteran's family; or
          (B) if the veteran's residence is to be constructed 
        or purchased, will be residing in and reasonably 
        intends to continue residing in a residence owned by 
        such veteran or by a member of such veteran's family.
  (c) Regulations.--Assistance under this section shall be 
provided in accordance with such regulations as the Secretary 
may prescribe.
  (d) Priority for Seriously Ill Veterans.--(1) In providing 
assistance under this section, the Secretary shall give 
priority to seriously ill veterans.
  (2) In this section, the term ``seriously ill veteran'' shall 
have the meaning given such term by the Secretary.

           *       *       *       *       *       *       *


Sec. 2102. Limitations on assistance furnished

  (a) The assistance authorized by section 2101(a) of this 
title shall be afforded under one of the following plans, at 
the option of the individual--
          (1) where the individual elects to construct a 
        housing unit on land to be acquired by such individual, 
        the Secretary shall pay not to exceed 50 percent of the 
        total cost to the individual of (A) the housing unit 
        and (B) the necessary land upon which it is to be 
        situated;
          (2) where the individual elects to construct a 
        housing unit on land acquired by such individual prior 
        to application for assistance under this chapter, the 
        Secretary shall pay not to exceed the smaller of the 
        following sums: (A) 50 percent of the total cost to the 
        individual of the housing unit and the land necessary 
        for such housing unit, or (B) 50 percent of the cost to 
        the individual of the housing unit plus the full amount 
        of the unpaid balance, if any, of the cost to the 
        individual of the land necessary for such housing unit;
          (3) where the individual elects to remodel a dwelling 
        which is not adapted to the requirements of such 
        individual's disability, acquired by such individual 
        prior to application for assistance under this chapter, 
        the Secretary shall pay not to exceed (A) the cost to 
        the individual of such remodeling; or (B) 50 percent of 
        the cost to the individual of such remodeling; plus the 
        smaller of the following sums: (i) 50 percent of the 
        cost to the individual of such dwelling and the 
        necessary land upon which it is situated, or (ii) the 
        full amount of the unpaid balance, if any, of the cost 
        to the individual of such dwelling and the necessary 
        land upon which it is situated; and
          (4) where the individual has acquired a suitable 
        housing unit, the Secretary shall pay not to exceed the 
        smaller of the following sums: (A) 50 percent of the 
        cost to the individual of such housing unit and the 
        necessary land upon which it is situated, or (B) the 
        full amount of the unpaid balance, if any, of the cost 
        to the individual of such housing unit and the 
        necessary land upon which it is situated.
  (b) Except as provided in section 2104(b) of this title, the 
assistance authorized by section 2101(b) of this title shall be 
limited to the lesser of--
          (1) the actual cost, or, in the case of an individual 
        acquiring a residence already adapted with special 
        features, the fair market value, of the adaptations 
        determined by the Secretary under such section 2101(b) 
        to be reasonably necessary, or
          (2) [$12,000] $19,733.
  (c) The amount of assistance afforded under subsection (a) 
for an individual authorized assistance by section 2101(a) of 
this title shall not be reduced by reason that title to the 
housing unit, which is vested in the individual, is also vested 
in any other person, if the individual resides in the housing 
unit.
  (d)(1) The aggregate amount of assistance available to an 
individual under section 2101(a) of this title shall be limited 
to [$63,780] $98,492.
  (2) The aggregate amount of assistance available to an 
individual under section 2101(b) of this title shall be limited 
to [$12,756] $19,733.
  (3) No veteran may receive more than [three] six grants of 
assistance under this chapter.
  (e)(1) Effective on October 1 of each year (beginning in 
2009), the Secretary shall increase the amounts described in 
subsection (b)(2) and paragraphs (1) and (2) of subsection (d) 
in accordance with this subsection.
  (2) The increase in amounts under paragraph (1) to take 
effect on October 1 of a year shall be by an amount of such 
amounts equal to the percentage by which--
          (A) the residential home cost-of-construction index 
        for the preceding calendar year, exceeds
          (B) the residential home cost-of-construction index 
        for the year preceding the year described in 
        subparagraph (A).
  (3) The Secretary shall establish a residential home cost-of-
construction index for the purposes of this subsection. The 
index shall reflect a uniform, national average change in the 
cost of residential home construction, determined on a calendar 
year basis. The Secretary may use an index developed in the 
private sector that the Secretary determines is appropriate for 
purposes of this subsection.
  (f)(1) Notwithstanding the aggregate amounts specified in 
subsection (d), a covered veteran may apply for and receive an 
additional amount of assistance under subsection (a) or (b) of 
section 2101 of this title in an amount that does not exceed 
half of the amount specified in subsection (d).
  (2) In this subsection, a covered veteran is a veteran who--
          (A) is described in section 2101(a)(2) of this title;
          (B) first receives assistance under this chapter on 
        or after October 1, 2020;
          (C) as of the date of the veteran's application for 
        assistance under paragraph (1), most recently received 
        assistance under this chapter more than ten years 
        before such date; and
          (D) lives in a home that the Secretary determines 
        does not have adaptations that are reasonably necessary 
        because of the veteran's disability.

           *       *       *       *       *       *       *


PART III--READJUSTMENT AND RELATED BENEFITS

           *       *       *       *       *       *       *


CHAPTER 33--POST-9/11 EDUCATIONAL ASSISTANCE

           *       *       *       *       *       *       *


                  SUBCHAPTER II--EDUCATIONAL ASSISTANCE

Sec.
3311. Educational assistance for service in the Armed Forces commencing 
          on or after September 11, 2001: entitlement.
     * * * * * * *
3315B. Preparatory courses for licensure, certification, or national 
          tests.

           *       *       *       *       *       *       *


                 SUBCHAPTER II--EDUCATIONAL ASSISTANCE

Sec. 3311. Educational assistance for service in the Armed Forces 
                    commencing on or after September 11, 2001: 
                    entitlement

  (a) Entitlement.--Subject to subsections (d) and (e), each 
individual described in subsection (b) is entitled to 
educational assistance under this chapter.
  (b) Covered Individuals.--An individual described in this 
subsection is any individual as follows:
          (1) An individual who--
                  (A) commencing on or after September 11, 
                2001, serves an aggregate of at least 36 months 
                on active duty in the Armed Forces (including 
                service on active duty in entry level and skill 
                training); and
                  (B) after completion of service described in 
                subparagraph (A)--
                          (i) continues on active duty; or
                          (ii) is discharged or released from 
                        active duty as described in subsection 
                        (c).
          (2) An individual who--
                  (A) commencing on or after September 11, 
                2001, serves at least 30 continuous days on 
                active duty in the Armed Forces; and
                  (B) after completion of service described in 
                subparagraph (A), is discharged or released 
                from active duty in the Armed Forces for a 
                service-connected disability.
          (3) An individual who--
                  (A) commencing on or after September 11, 
                2001, serves an aggregate of at least 30 
                months, but less than 36 months, on active duty 
                in the Armed Forces (including service on 
                active duty in entry level and skill training); 
                and
                  (B) after completion of service described in 
                subparagraph (A)--
                          (i) continues on active duty for an 
                        aggregate of less than 36 months; or
                          (ii) before completion of service on 
                        active duty of an aggregate of 36 
                        months, is discharged or released from 
                        active duty as described in subsection 
                        (c).
          (4) An individual who--
                  (A) commencing on or after September 11, 
                2001, serves an aggregate of at least 24 
                months, but less than 30 months, on active duty 
                in the Armed Forces (including service on 
                active duty in entry level and skill training); 
                and
                  (B) after completion of service described in 
                subparagraph (A)--
                          (i) continues on active duty for an 
                        aggregate of less than 30 months; or
                          (ii) before completion of service on 
                        active duty of an aggregate of 30 
                        months, is discharged or released from 
                        active duty as described in subsection 
                        (c).
          (5) An individual who--
                  (A) commencing on or after September 11, 
                2001, serves an aggregate of at least 18 
                months, but less than 24 months, on active duty 
                in the Armed Forces (excluding service on 
                active duty in entry level and skill training); 
                and
                  (B) after completion of service described in 
                subparagraph (A)--
                          (i) continues on active duty for an 
                        aggregate of less than 24 months; or
                          (ii) before completion of service on 
                        active duty of an aggregate of 24 
                        months, is discharged or released from 
                        active duty as described in subsection 
                        (c).
          (6) An individual who--
                  (A) commencing on or after September 11, 
                2001, serves an aggregate of at least 12 
                months, but less than 18 months, on active duty 
                in the Armed Forces (excluding service on 
                active duty in entry level and skill training); 
                and
                  (B) after completion of service described in 
                subparagraph (A)--
                          (i) continues on active duty for an 
                        aggregate of less than 18 months; or
                          (ii) before completion of service on 
                        active duty of an aggregate of 18 
                        months, is discharged or released from 
                        active duty as described in subsection 
                        (c).
          (7) An individual who--
                  (A) commencing on or after September 11, 
                2001, serves an aggregate of at least 6 months, 
                but less than 12 months, on active duty in the 
                Armed Forces (excluding service on active duty 
                in entry level and skill training); and
                  (B) after completion of service described in 
                subparagraph (A)--
                          (i) continues on active duty for an 
                        aggregate of less than 12 months; or
                          (ii) before completion of service on 
                        active duty of an aggregate of 12 
                        months, is discharged or released from 
                        active duty as described in subsection 
                        (c).
          (8) An individual who--
                  (A) commencing on or after September 11, 
                2001, serves an aggregate of at least 90 days, 
                but less than 6 months, on active duty in the 
                Armed Forces (excluding service on active duty 
                in entry level and skill training); and
                  (B) after completion of service described in 
                subparagraph (A)--
                          (i) continues on active duty for an 
                        aggregate of less than 6 months; or
                          (ii) before completion of service on 
                        active duty of an aggregate of 6 
                        months, is discharged or released from 
                        active duty as described in subsection 
                        (c).
          (9) An individual who is the child or spouse of a 
        person who, on or after September 11, 2001, dies in 
        line of duty while serving on active duty as a member 
        of the Armed Forces.
          (10) An individual who is the child or spouse of a 
        person who, on or after September 11, 2001, dies in 
        line of duty while serving on duty other than active 
        duty as a member of the Armed Forces.
          (11) An individual who is the child or spouse of a 
        member of the Selected Reserve who dies on or after 
        September 11, 2001--
                  (A) from a service-connected disability; and
                  (B) not later than four years after the date 
                of the last discharge or release of that member 
                from active duty or active duty for training.
          [(10)] (12) An individual who is awarded the Purple 
        Heart for service in the Armed Forces occurring on or 
        after September 11, 2001, and continues to serve on 
        active duty in the Armed Forces or is discharged or 
        released from active duty as described in subsection 
        (c).
  (c) Covered Discharges and Releases.--A discharge or release 
from active duty of an individual described in this subsection 
is a discharge or release as follows:
          (1) A discharge from active duty in the Armed Forces 
        with an honorable discharge.
          (2) A release after service on active duty in the 
        Armed Forces characterized by the Secretary concerned 
        as honorable service and placement on the retired list, 
        transfer to the Fleet Reserve or Fleet Marine Corps 
        Reserve, or placement on the temporary disability 
        retired list.
          (3) A release from active duty in the Armed Forces 
        for further service in a reserve component of the Armed 
        Forces after service on active duty characterized by 
        the Secretary concerned as honorable service.
          (4) A discharge or release from active duty in the 
        Armed Forces after service on active duty in the Armed 
        Forces characterized by the Secretary concerned as 
        honorable service for--
                  (A) a medical condition which preexisted the 
                service of the individual as described in the 
                applicable paragraph of subsection (b) and 
                which the Secretary determines is not service-
                connected;
                  (B) hardship; or
                  (C) a physical or mental condition that was 
                not characterized as a disability and did not 
                result from the individual's own willful 
                misconduct but did interfere with the 
                individual's performance of duty, as determined 
                by the Secretary concerned in accordance with 
                regulations prescribed by the Secretary of 
                Defense.
  (d) Prohibition on Treatment of Certain Service as Period of 
Active Duty.--The following periods of service shall not be 
considered a part of the period of active duty on which an 
individual's entitlement to educational assistance under this 
chapter is based:
          (1) A period of service on active duty of an officer 
        pursuant to an agreement under section 2107(b) of title 
        10.
          (2) A period of service on active duty of an officer 
        pursuant to an agreement under section 7448, 8459, or 
        9448 of title 10 or section 182 of title 14.
          (3) A period of service that is terminated because of 
        a defective enlistment and induction based on--
                  (A) the individual's being a minor for 
                purposes of service in the Armed Forces;
                  (B) an erroneous enlistment or induction; or
                  (C) a defective enlistment agreement.
  (e) Treatment of Individuals Entitled Under Multiple 
Provisions.--In the event an individual entitled to educational 
assistance under this chapter is entitled by reason of both 
paragraphs (4) and (5) of subsection (b), the individual shall 
be treated as being entitled to educational assistance under 
this chapter by reason of paragraph (5) of subsection (b).
  (f) Marine Gunnery Sergeant John David Fry Scholarship.--
          (1) In general.--Educational assistance payable by 
        reason of [paragraph (9)] paragraphs (9), (10), and 
        (11) of subsection (b) shall be known as the ``Marine 
        Gunnery Sergeant John David Fry scholarship''.
          (2) Limitation.--The entitlement of an individual to 
        assistance under subsection (a) pursuant to [paragraph 
        (9)] paragraphs (9), (10), and (11) of subsection (b) 
        because the individual was a spouse of a person 
        described in such paragraph shall expire on the earlier 
        of--
                  (A) the date that is 15 years after the date 
                on which the person died; or
                  (B) the date on which the individual 
                remarries.
          (3) Election on receipt of certain benefits.--Except 
        as provided in paragraph (4), a surviving spouse 
        entitled to assistance under subsection (a) pursuant to 
        [paragraph (9)] paragraphs (9), (10), and (11) of 
        subsection (b) who is also entitled to educational 
        assistance under chapter 35 of this title may not 
        receive assistance under both this section and such 
        chapter, but shall make an irrevocable election (in 
        such form and manner as the Secretary may prescribe) 
        under which section or chapter to receive educational 
        assistance.
          (4) Exception for certain elections.--
                  (A) In general.--An election made under 
                paragraph (3) by a spouse described in 
                subparagraph (B) may not be treated as 
                irrevocable if such election occurred before 
                the date of the enactment of this paragraph.
                  (B) Eligible surviving spouse.--A spouse 
                described in this subparagraph is an 
                individual--
                          (i) who is entitled to assistance 
                        under subsection (a) pursuant to 
                        [paragraph (9)] paragraphs (9), (10), 
                        and (11) of subsection (b); and
                          (ii) who was the spouse of a member 
                        of the Armed Forces who died during the 
                        period beginning on September 11, 2001, 
                        and ending on December 31, 2005.
          (5) Definition of child.--For purposes of [paragraph 
        (9)] paragraphs (9), (10), and (11) of subsection (b), 
        the term ``child'' includes a married individual or an 
        individual who is above the age of twenty-three years.

           *       *       *       *       *       *       *


Sec. 3315B. Preparatory courses for licensure, certification, or 
                    national tests

  (a) In General.--An individual entitled to educational 
assistance under this chapter shall also be entitled to payment 
for a preparatory course for a licensing or certification test 
that is required or used to enter into, maintain, or advance in 
employment in a predetermined and identified vocation or 
profession.
  (b) Amount.--The amount of educational assistance payable 
under this chapter for a course described in subsection (a) is 
the lesser of--
          (1) the fee charged for the course; or
          (2) the amount of entitlement available to the 
        individual under this chapter at the time of payment 
        for the course under this section.
  (c) Charge Against Entitlement.--The number of months of 
entitlement charged an individual under this chapter for a 
course described in subsection (a) shall be pro-rated based on 
the actual amount of the fee charged for the course relative to 
the rate for 1 month payable--
          (1) for the academic year beginning on August 1, 
        2020, $1,460; or
          (2) for an academic year beginning on any subsequent 
        August 1, the amount for the previous academic year 
        beginning on August 1 under this subsection, as 
        increased by the percentage increase equal to the most 
        recent percentage increase determined under section 
        3015(h).

           *       *       *       *       *       *       *


SUBCHAPTER III--ADMINISTRATIVE PROVISIONS

           *       *       *       *       *       *       *


Sec. 3322. Bar to duplication of educational assistance benefits

  (a) In General.--An individual entitled to educational 
assistance under this chapter who is also eligible for 
educational assistance under chapter 30, 31, 32, or 35 of this 
title, chapter 107, 1606, or 1607 or section 510 of title 10, 
or the provisions of the Hostage Relief Act of 1980 (Public Law 
96-449; 5 U.S.C. 5561 note) may not receive assistance under 
two or more such programs concurrently, but shall elect (in 
such form and manner as the Secretary may prescribe) under 
which chapter or provisions to receive educational assistance.
  (b) Inapplicability of Service Treated Under Educational Loan 
Repayment Programs.--A period of service counted for purposes 
of repayment of an education loan under chapter 109 of title 10 
may not be counted as a period of service for entitlement to 
educational assistance under this chapter.
  (c) Service in Selected Reserve.--An individual who serves in 
the Selected Reserve may receive credit for such service under 
only one of this chapter, chapter 30 of this title, and 
chapters 1606 and 1607 of title 10, and shall elect (in such 
form and manner as the Secretary may prescribe) under which 
chapter such service is to be credited.
  (d) Additional Coordination Matters.--In the case of an 
individual entitled to educational assistance under chapter 30, 
31, 32, or 35 of this title, chapter 107, 1606, or 1607 of 
title 10, or the provisions of the Hostage Relief Act of 1980, 
or making contributions toward entitlement to educational 
assistance under chapter 30 of this title, as of August 1, 
2009, coordination of entitlement to educational assistance 
under this chapter, on the one hand, and such chapters or 
provisions, on the other, shall be governed by the provisions 
of section 5003(c) of the Post-9/11 Veterans Educational 
Assistance Act of 2008.
  (e) Bar To Concurrent Receipt of Transferred Education 
Benefits and Marine Gunnery Sergeant John David Fry Scholarship 
Assistance.--An individual entitled to educational assistance 
under both [sections 3311(b)(9) and 3319] section 3319 and 
paragraph (9), (10), or (11) of section 3311 of this title may 
not receive assistance under both provisions concurrently, but 
shall elect (in such form and manner as the Secretary may 
prescribe) under which provision to receive educational 
assistance.
  (f) Bar To Receipt of Compensation and Pension and Marine 
Gunnery Sergeant John David Fry Scholarship Assistance.--The 
commencement of a program of education under [section 
3311(b)(9)] paragraph (9), (10), or (11) of section 3311 of 
this title shall be a bar to the following:
          (1) Subsequent payments of dependency and indemnity 
        compensation or pension based on the death of a parent 
        to an eligible person over the age of 18 years by 
        reason of pursuing a course in an educational 
        institution.
          (2) Increased rates, or additional amounts, of 
        compensation, dependency and indemnity compensation, or 
        pension because of such a person, whether eligibility 
        is based upon the death of the parent.
  (g) Bar To Concurrent Receipt of Transferred Education 
Benefits.--A spouse or child who is entitled to educational 
assistance under this chapter based on a transfer of 
entitlement from more than one individual under section 3319 
may not receive assistance based on transfers from more than 
one such individual concurrently, but shall elect (in such form 
and manner as the Secretary may prescribe) under which source 
to utilize such assistance at any one time.
  (h) Bar To Duplication of Eligibility Based on a Single Event 
or Period of Service.--
          (1) Active-duty service.--An individual with 
        qualifying service in the Armed Forces that establishes 
        eligibility on the part of such individual for 
        educational assistance under this chapter, chapter 30 
        or 32 of this title, and chapter 1606 or 1607 of title 
        10, shall elect (in such form and manner as the 
        Secretary may prescribe) under which authority such 
        service is to be credited.
          (2) Eligibility for educational assistance based on 
        parent's service.--A child of a member of the Armed 
        Forces who, on or after September 11, 2001, dies in the 
        line of duty while serving on active duty, who is 
        eligible for educational assistance under [either 
        section 3311(b)(9) or chapter 35] either chapter 35 or 
        paragraph (9), (10), or (11) of section 3311 of this 
        title based on the parent's death may not receive such 
        assistance under both this chapter and chapter 35 of 
        this title, but shall elect (in such form and manner as 
        the Secretary may prescribe) under which chapter to 
        receive such assistance.

           *       *       *       *       *       *       *


CHAPTER 34--VETERANS' EDUCATIONAL ASSISTANCE

           *       *       *       *       *       *       *


SUBCHAPTER IV--PAYMENTS TO ELIGIBLE VETERANS; VETERAN-STUDENT SERVICES

           *       *       *       *       *       *       *


Sec. 3485. Work-study allowance

  (a)(1) [Individuals] In accordance with paragraph (4), 
individuals utilized under the authority of subsection (b) 
shall be paid an additional educational assistance allowance 
(hereinafter in this section referred to as ``work-study 
allowance''). Such allowance shall be paid in return for an 
individual's entering into an agreement described in paragraph 
(3).
  (2) Such work-study allowance shall be paid in an amount 
equal to the product of--
          (A) the applicable hourly minimum wage; and
          (B) the number of hours worked during the applicable 
        period.
  (3) An agreement described in this paragraph is an agreement 
of an individual to perform services, during or between periods 
of enrollment, aggregating not more than a number of hours 
equal to 25 times the number of weeks in the semester or other 
applicable enrollment period, required in connection with a 
qualifying work-study activity.
  (4)(A) The Secretary shall carry out this section by 
providing to educational institutions an annual amount for the 
institution to use in paying work-study allowance under 
paragraph (1) to individuals enrolled at the institution.
  (B) With respect to an educational institution that 
participated in the work-study program under this section 
during the academic year beginning August 1, 2018, the 
Secretary shall determine the annual amount to provide to the 
educational institution under subparagraph (A) as follows:
          (i) For the academic year beginning August 1, 2020, 
        the amount shall be the total amount the Secretary paid 
        under this section to individuals enrolled at such 
        educational institution during the academic year 
        beginning August 1, 2018.
          (ii) Except as provided by subparagraph (D)(ii), for 
        each academic year beginning on or after August 1, 
        2021, the amount shall be the total amount the 
        educational institution paid under this section for 
        work-study allowance to individuals enrolled at such 
        educational institution during the previous academic 
        year in which individuals participated in the work-
        study program.
  (C) With respect to an educational institution that did not 
participate in the work-study program under this section during 
the academic year beginning August 1, 2018, the Secretary shall 
determine the annual amount to provide to the educational 
institution under subparagraph (A) as follows:
          (i) For the first academic year in which the 
        educational institution participates in the work-study 
        program beginning on or after August 1, 2020, the 
        amount shall be an amount the Secretary determines 
        appropriate based on amounts provided to similar 
        educational institutions pursuant to subparagraph (B).
          (ii) Except as provided by subparagraph (D)(ii), for 
        each academic year occurring after the academic year 
        specified in clause (i), the amount shall be the total 
        amount the educational institution paid under this 
        section for work-study allowance to individuals 
        enrolled at such educational institution during the 
        previous academic year in which individuals enrolled at 
        such educational institution participated in the work-
        study program.
  (D)(i) Except as provided in clause (ii), if the Secretary 
provides an annual amount to an educational institution under 
subparagraph (B) or (C) that is more than the total amount the 
educational institution pays to individuals under paragraph 
(1), the educational institution shall return to the Secretary 
the unpaid amount and the Secretary shall transfer such amount 
into the general fund of the Treasury.
  (ii) If the annual amount provided to an educational 
institution under subparagraph (B) or (C) is more, but less 
than 25 percent more, than the total amount the educational 
institution pays to individuals under paragraph (1), and the 
educational institution plans to participate in the work-study 
program under this section during the subsequent academic year, 
the educational institution may retain the amount of the 
overpayment if the educational institution notifies the 
Secretary of the amount of the overpayment and the intention of 
the educational institution to retain such amount. Any amount 
retained by an educational institution under this clause may 
only be used by the educational institution to provide work-
study allowance to individuals enrolled at the educational 
institution.
  (iii) At any time an educational institution may request the 
Secretary to increase the annual amount that the Secretary 
provides the educational institution under subparagraph (B) or 
(C).
  (E) Pursuant to section 3690(c), section 3693, and other 
provisions of chapter 36 of this title, the Secretary shall 
ensure that educational institutions carry out the work-study 
allowance program in compliance with this section.
  [(4)] (5) For the purposes of this section, the term 
``qualifying work-study activity'' means any of the following:
          (A) The outreach services program under chapter 63 of 
        this title as carried out under the supervision of a 
        Department employee or, during the period preceding 
        June 30, 2013, or any time on or after June 30, 2017, 
        outreach services to servicemembers and veterans 
        furnished by employees of a State approving agency.
          (B) The preparation and processing of necessary 
        papers and other documents at educational institutions 
        or regional offices or facilities of the Department.
          (C) The provision of hospital and domiciliary care 
        and medical treatment under chapter 17 of this title, 
        including, during the period preceding June 30, 2013, 
        or any time on or after June 30, 2017, the provision of 
        such care to veterans in a State home for which payment 
        is made under section 1741 of this title.
          (D) Any other activity of the Department as the 
        Secretary determines appropriate.
          (E) In the case of an individual who is receiving 
        educational assistance under chapter 1606 or 1607 of 
        title 10, an activity relating to the administration of 
        that chapter at Department of Defense, Coast Guard, or 
        National Guard facilities.
          (F) During the period preceding June 30, 2013, or any 
        time on or after June 30, 2017, an activity relating to 
        the administration of a national cemetery or a State 
        veterans' cemetery.
          (G) Any activity of a State veterans agency related 
        to providing assistance to veterans in obtaining any 
        benefit under the laws administered by the Secretary or 
        the laws of the State.
          (H) A position working in a Center of Excellence for 
        Veteran Student Success, as established pursuant to 
        part T of title VIII of the Higher Education Act of 
        1965 (20 U.S.C. 1161t et seq.).
          (I) A position working in a cooperative program 
        carried out jointly by the Department and an 
        institution of higher learning.
          (J) Any other veterans-related position in an 
        institution of higher learning.
  [(5)] (6) An individual may elect, in a manner prescribed by 
the Secretary, to be paid in advance an amount equal to 40 
percent of the total amount of the work-study allowance agreed 
to be paid under the agreement in return for the individual's 
agreement to perform the number of hours of work specified in 
the agreement (but not more than an amount equal to 50 times 
the applicable hourly minimum wage).
  [(6)] (7) For the purposes of this subsection and subsection 
(e), the term ``applicable hourly minimum wages'' means--
          (A) the hourly minimum wage under section 6(a) of the 
        Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)); or
          (B) the hourly minimum wage under comparable law of 
        the State in which the services are to be performed, if 
        such wage is higher than the wage referred to in 
        subparagraph (A) and the Secretary has made a 
        determination to pay such higher wage.
  (b) Notwithstanding any other provision of law, the Secretary 
shall, subject to the provisions of subsection (e) of this 
section, utilize, in connection with the activities specified 
in subsection (a)(1) of this section, the service of 
individuals who are pursuing programs of rehabilitation, 
education, or training under chapter 30, 31, 32, 33, or 34 of 
this title or chapter 1606 or 1607 of title 10, at a rate equal 
to at least three-quarters of that required of a full-time 
student. In carrying out this section, the Secretary, wherever 
feasible, shall give priority to veterans with disabilities 
rated at 30 percent or more for purposes of chapter 11 of this 
title. In the event an individual ceases to be at least a 
three-quarter-time student before completing such agreement, 
the individual may, with the approval of the Secretary, be 
permitted to complete such agreement.
  (c) The Secretary shall determine the number of individuals 
whose services the Department of Veterans Affairs can 
effectively utilize and the types of services that such 
individuals may be required to perform, on the basis of a 
survey, which the Secretary shall conduct annually, of each 
Department of Veterans Affairs regional office in order to 
determine the numbers of individuals whose services can 
effectively be utilized during an enrollment period in each 
geographical area where Department of Veterans Affairs 
activities are conducted, and shall determine which individuals 
shall be offered agreements under this section in accordance 
with regulations which the Secretary shall prescribe, including 
as criteria (1) the need of the individual to augment the 
veteran's educational assistance or subsistence allowance; (2) 
the availability to the individual of transportation to the 
place where the individual's services are to be performed; (3) 
the motivation of the individual; and (4) in the case of a 
disabled veteran pursuing a course of vocational rehabilitation 
under chapter 31 of this title, the compatibility of the work 
assignment to the veteran's physical condition.
  (d) While performing the services authorized by this section, 
individuals shall be deemed employees of the United States for 
the purposes of the benefits of chapter 81 of title 5 but not 
for the purposes of laws administrated by the Office of 
Personnel Management.
  (e)(1) Subject to paragraph (2) of this subsection, the 
Secretary may, notwithstanding any other provision of law, 
enter into an agreement with an individual under this section, 
or a modification of such an agreement, whereby the individual 
agrees to perform a qualifying work-study activity described in 
[subsection (a)(4)] subsection (a)(5) and agrees that the 
Secretary shall, in lieu of paying the work-study allowance 
payable for such services, as provided in subsection (a) of 
this section, deduct the amount of the allowance from the 
amount which the individual has been determined to be indebted 
to the United States by virtue of such individual's 
participation in a benefits program under this chapter, chapter 
30, 31, 32, 33, 35, or 36 of this title, or chapter 1606 or 
1607 of title 10 (other than an indebtedness arising from a 
refund penalty imposed under section 2135 of such title).
  (2)(A) Subject to subparagraph (B) of this paragraph, the 
provisions of this section (other than those provisions which 
are determined by the Secretary to be inapplicable to an 
agreement under this subsection) shall apply to any agreement 
authorized under paragraph (1) of this subsection.
  (B) For the purposes of this subsection, the Secretary may--
          (i) waive, in whole or in part, the limitations in 
        subsection (a) of this section concerning the number of 
        hours and periods during which services can be 
        performed by the individual and the provisions of 
        subsection (b) of this section requiring the 
        individual's pursuit of a program of rehabilitation, 
        education, or training;
          (ii) in accordance with such terms and conditions as 
        may be specified in the agreement under this 
        subsection, waive or defer charging interest and 
        administrative costs pursuant to section 5315 of this 
        title on the indebtedness to be satisfied by 
        performance of the agreement; and
          (iii) notwithstanding the indebtedness offset 
        provisions of section 5314 of this title, waive or 
        defer until the termination of an agreement under this 
        subsection the deduction of all or any portion of the 
        amount of indebtedness covered by the agreement from 
        future payments to the individual as described in 
        section 5314 of this title.
  (3)(A) Subject to the provisions of subparagraphs (B) and (C) 
of this paragraph, an agreement authorized under this 
subsection shall terminate in accordance with the provisions of 
this section and the terms and conditions of the agreement 
which are consistent with this subsection.
  (B) In no event shall an agreement under this subsection 
continue in force after the total amount of the individual's 
indebtedness described in paragraph (1) of this subsection has 
been recouped, waived, or otherwise liquidated.
  (C) Notwithstanding the provisions of subparagraphs (A) and 
(B) of this paragraph, if the Secretary finds that an 
individual was without fault and was allowed to perform 
services described in the agreement after its termination, the 
Secretary shall, as reasonable compensation therefor, pay the 
individual at the applicable hourly minimum wage rate for such 
services as the Secretary determines were satisfactorily 
performed.
  (4) The Secretary shall promulgate regulations to carry out 
this subsection.

           *       *       *       *       *       *       *


CHAPTER 35--SURVIVORS' AND DEPENDENTS' EDUCATIONAL ASSISTANCE

           *       *       *       *       *       *       *


SUBCHAPTER IV--PAYMENTS TO ELIGIBLE PERSONS

           *       *       *       *       *       *       *


Sec. 3532. Computation of educational assistance allowance

  (a)(1) The educational assistance allowance on behalf of an 
eligible person who is pursuing a program of education 
consisting of institutional courses shall be paid at the 
monthly rate of $1,224 for full-time, $967 for three-quarter-
time, or $710 for half-time pursuit.
  (2) The educational assistance allowance on behalf of an 
eligible person pursuing a program of education on less than a 
half-time basis shall be paid at the rate of the lesser of--
          (A) the established charges for tuition and fees that 
        the educational institution involved requires similarly 
        circumstanced nonveterans enrolled in the same program 
        to pay; or
          (B) $1,224 per month for a full-time course.
  (b) The educational assistance allowance to be paid on behalf 
of an eligible person who is pursuing a full-time program of 
education 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, shall 
be computed at the rate of $1,224 per month.
  (c)(1) An eligible person who is enrolled in an educational 
institution for a ``farm cooperative'' program consisting of 
institutional agricultural courses prescheduled to fall within 
forty-four weeks of any period of twelve consecutive months and 
who pursues such program on--
          (A) a full-time basis (a minimum of ten clock hours 
        per week or four hundred and forty clock hours in such 
        year prescheduled to provide not less than eighty clock 
        hours in any three-month period),
          (B) a three-quarter-time basis (a minimum of seven 
        clock hours per week), or
          (C) a half-time basis (a minimum of five clock hours 
        per week),
shall be eligible to receive an educational assistance 
allowance at the appropriate rate provided in paragraph (2) of 
this subsection, if such eligible person is concurrently 
engaged in agricultural employment which is relevant to such 
institutional agricultural courses as determined under 
standards prescribed by the Secretary. In computing the 
foregoing clock hour requirements there shall be included the 
time involved in field trips and individual and group 
instruction sponsored and conducted by the educational 
institution through a duly authorized instructor of such 
institution in which the person is enrolled.
  (2) The monthly educational assistance allowance to be paid 
on behalf of an eligible person pursuing a farm cooperative 
program under this chapter shall be $636 for full-time, $477 
for three-quarter-time, or $319 for half-time pursuit.
  (d) If a program of education is pursued by an eligible 
person at an institution located in the Republic of the 
Philippines, the educational assistance allowance computed for 
such person under this section shall be paid at the rate of 
$0.50 for each dollar.
  (e) In the case of an eligible person who is pursuing a 
program of education under this chapter while incarcerated in a 
Federal, State, local, or other penal institution or 
correctional facility for conviction of a felony, the 
educational assistance allowance shall be paid in the same 
manner prescribed in section 3482(g) of this title for 
incarcerated veterans, except that the references therein to 
the monthly educational assistance allowance prescribed for a 
veteran with no dependents shall be deemed to refer to the 
applicable allowance payable to an eligible person under 
corresponding provisions of this chapter or chapter 36 of this 
title, as determined by the Secretary.
  (f)(1) Subject to paragraph (3), the amount of educational 
assistance payable under this chapter for a licensing or 
certification test described in section 3501(a)(5) of this 
title is the lesser of $2,000 or the fee charged for the test.
  (2) The number of months of entitlement charged in the case 
of any individual for such licensing or certification test is 
equal to the number (including any fraction) determined by 
dividing the total amount paid to such individual for such test 
by the full-time monthly institutional rate of the educational 
assistance allowance which, except for paragraph (1), such 
individual would otherwise be paid under this chapter.
  (3) In no event shall payment of educational assistance under 
this subsection for such a test exceed the amount of the 
individual's available entitlement under this chapter.
  (g)(1) Subject to paragraph (3), the amount of educational 
assistance payable under this chapter for a national test for 
admission or national test providing an opportunity for course 
credit at institutions of higher learning described in section 
3501(a)(5) of this title or a preparatory course described in 
section 3315B(a) of this title is the amount of the fee charged 
for the test.
  (2) The number of months of entitlement charged in the case 
of any individual for a test or preparatory course described in 
paragraph (1) is equal to the number (including any fraction) 
determined by dividing the total amount of educational 
assistance paid such individual for such test or preparatory 
course by the full-time monthly institutional rate of 
educational assistance, except for paragraph (1), such 
individual would otherwise be paid under this chapter.
  (3) In no event shall payment of educational assistance under 
this subsection for a test or preparatory course described in 
paragraph (1) exceed the amount of the individual's available 
entitlement under this chapter.

           *       *       *       *       *       *       *


CHAPTER 37--HOUSING AND SMALL BUSINESS LOANS

           *       *       *       *       *       *       *


SUBCHAPTER III--ADMINISTRATIVE PROVISIONS

           *       *       *       *       *       *       *


Sec. 3729. Loan fee

  (a) Requirement of Fee.--(1) Except as provided in subsection 
(c), a fee shall be collected from each person obtaining a 
housing loan guaranteed, insured, or made under this chapter, 
and each person assuming a loan to which section 3714 of this 
title applies. No such loan may be guaranteed, insured, made, 
or assumed until the fee payable under this section has been 
remitted to the Secretary.
  (2) The fee may be included in the loan and paid from the 
proceeds thereof.
  (b) Determination of Fee.--(1) The amount of the fee shall be 
determined from the loan fee table in paragraph (2). The fee is 
expressed as a percentage of the total amount of the loan 
guaranteed, insured, or made, or, in the case of a loan 
assumption, the unpaid principal balance of the loan on the 
date of the transfer of the property.
  (2) The loan fee table referred to in paragraph (1) is as 
follows:


 
----------------------------------------------------------------------------------------------------------------
                                                       Active duty
                  [Type of loan                          veteran             Reservist          Other obligor
----------------------------------------------------------------------------------------------------------------
(A)(i) Initial loan described in section 3710(a)   2.15                 2.40                 NA
 to purchase or construct a dwelling with 0-down,
 or any other initial loan described in section
 3710(a) other than with 5-down or 10-down
 (closed on or after October 1, 2004, and before
 January 1, 2020)
(A)(ii) Initial loan described in section 3710(a)  2.30                 2.30                 NA
 to purchase or construct a dwelling with 0-down,
 or any other initial loan described in section
 3710(a) other than with 5-down or 10-down
 (closed on or after January 1, 2020, and before
 January 1, 2022)
(A)(iii) Initial loan described in section         2.15                 2.15                 NA
 3710(a) to purchase or construct a dwelling with
 0-down, or any other initial loan described in
 section 3710(a) other than with 5-down or 10-
 down (closed on or after January 1, 2022, and
 before October 1, 2029)
(A)(iv) Initial loan described in section 3710(a)  1.40                 1.40                 NA
 to purchase or construct a dwelling with 0-down,
 or any other initial loan described in section
 3710(a) other than with 5-down or 10-down
 (closed on or after October 1, 2029)
(B)(i) Subsequent loan described in section        3.30                 3.30                 NA
 3710(a) to purchase or construct a dwelling with
 0-down, or any other subsequent loan described
 in section 3710(a) (closed on or after October
 1, 2004, and before January 1, 2020)
(B)(ii) Subsequent loan described in section       3.60                 3.60                 NA
 3710(a) to purchase or construct a dwelling with
 0-down, or any other subsequent loan described
 in section 3710(a) (closed on or after January
 1, 2020, and before January 1, 2022)
(B)(iii) Subsequent loan described in section      3.30                 3.30                 NA
 3710(a) to purchase or construct a dwelling with
 0-down, or any other subsequent loan described
 in section 3710(a) (closed on or after January
 1, 2022, and before October 1, 2029)
(B)(iv) Subsequent loan described in section       1.25                 1.25                 NA
 3710(a) to purchase or construct a dwelling with
 0-down, or any other subsequent loan described
 in section 3710(a) (closed on or after October
 1, 2029)
(C)(i) Loan described in section 3710(a) to        1.50                 1.75                 NA
 purchase or construct a dwelling with 5-down
 (closed before January 1, 2020)
(C)(ii) Loan described in section 3710(a) to       1.65                 1.65                 NA
 purchase or construct a dwelling with 5-down
 (closed on or after January 1, 2020, and before
 January 1, 2022)
(C)(iii) Loan described in section 3710(a) to      1.50                 1.50                 NA
 purchase or construct a dwelling with 5-down
 (closed on or after January 1, 2022, and before
 October 1, 2029)
(C)(iv) Loan described in section 3710(a) to       0.75                 0.75                 NA
 purchase or construct a dwelling with 5-down
 (closed on or after October 1, 2029)
(D)(i) Loan described in section 3710(a) to        1.25                 1.50                 NA
 purchase or construct a dwelling with 10-down
 (closed before January 1, 2020)
(D)(ii) Loan described in section 3710(a) to       1.40                 1.40                 NA
 purchase or construct a dwelling with 10-down
 (closed on or after January 1, 2020, and before
 January 1, 2022)
(D)(iii) Loan described in section 3710(a) to      1.25                 1.25                 NA
 purchase or construct a dwelling with 10-down
 (closed on or after January 1, 2022, and before
 October 1, 2029)
(D)(iv) Loan described in section 3710(a) to       0.50                 0.50                 NA
 purchase or construct a dwelling with 10-down
 (closed on or after October 1, 2029)
(E) Interest rate reduction refinancing loan       0.50                 0.50                 NA
(F) Direct loan under section 3711                 1.00                 1.00                 NA
(G) Manufactured home loan under section 3712      1.00                 1.00                 NA
 (other than an interest rate reduction
 refinancing loan)
(H) Loan to Native American veteran under section  1.25                 1.25                 NA
 3762 (other than an interest rate reduction
 refinancing loan)
(I) Loan assumption under section 3714             0.50                 0.50                 0.50
(J) Loan under section 3733(a)                     2.25                 2.25                 2.25]
----------------------------------------------------------------------------------------------------------------



 
----------------------------------------------------------------------------------------------------------------
                                                       Active duty
                   Type of loan                          veteran             Reservist          Other obligor
----------------------------------------------------------------------------------------------------------------
(A)(i) Initial loan described in section 3710(a)   2.15                 2.40                 NA
 to purchase or construct a dwelling with 0-down,
 or any other initial loan described in section
 3710(a) other than with 5-down or 10-down
 (closed on or after October 1, 2004, and before
 January 1, 2020)
(A)(ii) Initial loan described in section 3710(a)  2.30                 2.30                 NA
 to purchase or construct a dwelling with 0-down,
 or any other initial loan described in section
 3710(a) other than with 5-down or 10-down
 (closed on or after January 1, 2020, and before
 October 1, 2027)
(A)(iii) Initial loan described in section         2.15                 2.15                 NA
 3710(a) to purchase or construct a dwelling with
 0-down, or any other initial loan described in
 section 3710(a) other than with 5-down or 10-
 down (closed on or after October 1, 2027, and
 before October 1, 2029)
(A)(iv) Initial loan described in section 3710(a)  1.40                 1.40                 NA
 to purchase or construct a dwelling with 0-down,
 or any other initial loan described in section
 3710(a) other than with 5-down or 10-down
 (closed on or after October 1, 2029)
(B)(i) Subsequent loan described in section        3.30                 3.30                 NA
 3710(a) to purchase or construct a dwelling with
 0-down, or any other subsequent loan described
 in section 3710(a) (closed on or after October
 1, 2004, and before January 1, 2020)
(B)(ii) Subsequent loan described in section       3.60                 3.60                 NA
 3710(a) to purchase or construct a dwelling with
 0-down, or any other subsequent loan described
 in section 3710(a) (closed on or after January
 1, 2020, and before October 1, 2027)
(B)(iii) Subsequent loan described in section      3.30                 3.30                 NA
 3710(a) to purchase or construct a dwelling with
 0-down, or any other subsequent loan described
 in section 3710(a) (closed on or after October
 1, 2027, and before October 1, 2029)
(B)(iv) Subsequent loan described in section       1.25                 1.25                 NA
 3710(a) to purchase or construct a dwelling with
 0-down, or any other subsequent loan described
 in section 3710(a) (closed on or after October
 1, 2029)
(C)(i) Loan described in section 3710(a) to        1.50                 1.75                 NA
 purchase or construct a dwelling with 5-down
 (closed before January 1, 2020)
(C)(ii) Loan described in section 3710(a) to       1.65                 1.65                 NA
 purchase or construct a dwelling with 5-down
 (closed on or after January 1, 2020, and before
 October 1, 2027)
(C)(iii) Loan described in section 3710(a) to      1.50                 1.50                 NA
 purchase or construct a dwelling with 5-down
 (closed on or after October 1, 2027, and before
 October 1, 2029)
(C)(iv) Loan described in section 3710(a) to       0.75                 0.75                 NA
 purchase or construct a dwelling with 5-down
 (closed on or after October 1, 2029)
(D)(i) Loan described in section 3710(a) to        1.25                 1.50                 NA
 purchase or construct a dwelling with 10-down
 (closed before January 1, 2020)
(D)(ii) Loan described in section 3710(a) to       1.40                 1.40                 NA
 purchase or construct a dwelling with 10-down
 (closed on or after January 1, 2020, and before
 October 1, 2027)
(D)(iii) Loan described in section 3710(a) to      1.25                 1.25                 NA
 purchase or construct a dwelling with 10-down
 (closed on or after October 1, 2027, and before
 October 1, 2029)
(D)(iv) Loan described in section 3710(a) to       0.50                 0.50                 NA
 purchase or construct a dwelling with 10-down
 (closed on or after October 1, 2029)
(E) Interest rate reduction refinancing loan       0.50                 0.50                 NA
(F) Direct loan under section 3711                 1.00                 1.00                 NA
(G) Manufactured home loan under section 3712      1.00                 1.00                 NA
 (other than an interest rate reduction
 refinancing loan)
(H) Loan to Native American veteran under section  1.25                 1.25                 NA
 3762 (other than an interest rate reduction
 refinancing loan)
(I) Loan assumption under section 3714             0.50                 0.50                 0.50
(J) Loan under section 3733(a)                     2.25                 2.25                 2.25
----------------------------------------------------------------------------------------------------------------

  (3) Any reference to a section in the ``Type of loan'' column 
in the loan fee table in paragraph (2) refers to a section of 
this title.
  (4) For the purposes of paragraph (2):
          (A) The term ``active duty veteran'' means any 
        veteran eligible for the benefits of this chapter other 
        than a Reservist.
          (B) The term ``Reservist'' means a veteran described 
        in section 3701(b)(5)(A) of this title who is eligible 
        under section 3702(a)(2)(E) of this title.
          (C) The term ``other obligor'' means a person who is 
        not a veteran, as defined in section 101 of this title 
        or other provision of this chapter.
          (D) The term ``initial loan'' means a loan to a 
        veteran guaranteed under section 3710 or made under 
        section 3711 of this title if the veteran has never 
        obtained a loan guaranteed under section 3710 or made 
        under section 3711 of this title.
          (E) The term ``subsequent loan'' means a loan to a 
        veteran, other than an interest rate reduction 
        refinancing loan, guaranteed under section 3710 or made 
        under section 3711 of this title if the veteran has 
        previously obtained a loan guaranteed under section 
        3710 or made under section 3711 of this title.
          (F) The term ``interest rate reduction refinancing 
        loan'' means a loan described in section 3710(a)(8), 
        3710(a)(9)(B)(i), 3710(a)(11), 3712(a)(1)(F), or 
        3762(h) of this title.
          (G) The term ``0-down'' means a downpayment, if any, 
        of less than 5 percent of the total purchase price or 
        construction cost of the dwelling.
          (H) The term ``5-down'' means a downpayment of at 
        least 5 percent or more, but less than 10 percent, of 
        the total purchase price or construction cost of the 
        dwelling.
          (I) The term ``10-down'' means a downpayment of 10 
        percent or more of the total purchase price or 
        construction cost of the dwelling.
  (c) Waiver of Fee.--(1) A fee may not be collected under this 
section from a veteran who is receiving compensation (or who, 
but for the receipt of retirement pay or active service pay, 
would be entitled to receive compensation), from a surviving 
spouse of any veteran (including a person who died in the 
active military, naval, or air service) who died from a 
service-connected disability, or from a member of the Armed 
Forces who is serving on active duty and who provides, on or 
before the date of loan closing, evidence of having been 
awarded the Purple Heart.
  (2)(A) A veteran described in subparagraph (B) shall be 
treated as receiving compensation for purposes of this 
subsection as of the date of the rating described in such 
subparagraph without regard to whether an effective date of the 
award of compensation is established as of that date.
  (B) A veteran described in this subparagraph is a veteran who 
is rated eligible to receive compensation--
          (i) as the result of a pre-discharge disability 
        examination and rating; or
          (ii) based on a pre-discharge review of existing 
        medical evidence (including service medical and 
        treatment records) that results in the issuance of a 
        memorandum rating.

           *       *       *       *       *       *       *


                             MINORITY VIEWS

    The Minority offers the following Minority views regarding 
H.R. 3504, as amended.
    The Minority supports, H.R. 3504, as amended, but believes 
that bill would have been improved if the Majority considered 
and adopted an amendment to the amendment in the nature of a 
substitute (ANS) to H.R. 3504 that was offered by 
Representative Roy of Texas. The ANS to H.R. 3504 makes various 
improvements to programs within the Department of Veteran's 
Affairs (VA) Veterans Benefits Administration including 
specially adapted housing grants, work-study, and the Fry 
Scholarship. Representative Roy's amendment would have added to 
those improvements by codifying VA's practice of not sending 
personally identifying information (PII) on beneficiaries to 
the Federal Bureau of Investigation's National Instant Criminal 
Background Check System (NICS) solely based on an adjudication 
of service-connection for a disability.
    Under current law, Section 922(g)(4) of Title 18, United 
States Code, an individual ``who has been adjudicated as a 
mental defective or committed to a mental institution'' may not 
``ship or transport in interstate or foreign commerce, or 
possess in or affecting commerce, any firearm or ammunition; or 
to receive any firearm or ammunition which has been shipped or 
transported in interstate or foreign commerce.'' Section 922(d) 
makes it a felony to knowingly sell a firearm or ammunition to 
such individuals. The Brady Handgun Violence Prevention Act of 
1993, Public Law 103-159 (Brady Act), requires federal 
agencies, upon the request of the Attorney General, to report 
PII of certain individuals, including those adjudicated as a 
mental defective, to the FBI's National Instant Criminal 
Background Check System (NICS). NICS is a database that federal 
firearms licensees use to verify if an individual may lawfully 
purchase a firearm or ammunition. Currently, VA does not report 
PII of veterans based solely on an adjudication for service-
connected disability compensation benefits.
    On February 28, 2019, the House passed H.R. 1112, as 
amended, The Enhanced Background Checks Act of 2019, by a 
recorded vote of 228-198. H.R. 1112, as amended, would change 
the language in Section 922(g)(4) and (d)(4) of Title 18 from 
``adjudicated as a mental defective'' to ``adjudicated with 
mental illness, severe developmental disability, or severe 
emotional instability''. Veterans and veterans' advocates have 
raised concerns that, if H.R. 1112, as amended, was enacted, VA 
could interpret an adjudication of an award of service-
connected disability compensation for PTSD or any other mental 
disorder or disability as sufficient reason to report veterans 
to the NICS list. To put this into perspective, according to 
information provided by VA, more than one million veterans 
receive disability benefits for mental illness. If H.R. 1112, 
as amended, is enacted, VA could begin reporting veterans to 
NICS without evidence that the individual is a danger to 
themselves or others.
    Despite the devastating and far-reaching implications H.R. 
1112, as amended, may have on veteran's constitutional rights 
by potentially requiring VA to report information on veterans, 
H.R. 1112, as amended, was never considered or debated within 
the Committee. As such, prior to floor consideration of H.R. 
1112, as amended, Ranking Member Roe offered an amendment at 
the House Rules Committee to clarify that veterans with a VA 
identified mental illness and other affected VA adjudications 
should be exempt from the standard in H.R. 1112, as amended. 
However, Ranking Member Roe's amendment was ruled out of order 
on February 25, 2019.
    In response to concerns raised by Veterans of Foreign Wars, 
during floor consideration of H.R. 1112, Chairman Jerrold 
Nadler of the House Committee on Judiciary (Judiciary 
Committee) clarified that the bill was not intended to change 
current law and that he would work with stakeholders to address 
the problems identified.\1\ Although the Minority was 
encouraged by Chairman Nadler's statement, as of the date of 
the markup, the Judiciary Committee had not presented any 
legislation that would address the concerns stated above. Due 
to the lack of action by the Judiciary Committee Majority, 
Representative Roy introduced H.R. 3450, a bill that is similar 
to the amendment Ranking Member Roe offered at the Rules 
Committee. Ranking Member Roe requested that H.R. 3450 be 
included on the June 20, 2019 Full Committee Legislative 
Hearing and July 11, 2019 markup agenda, but both these 
requests were denied.
---------------------------------------------------------------------------
    \1\Enhanced Background Checks Act of 2019, Congressional Record, 
daily edition, vol. 165 (February 28, 2019), pp. H2281.
---------------------------------------------------------------------------
    During the Full Committee markup of H.R. 3504, 
Representative Roy offered an amendment to codify VA's existing 
practice of not sending certain personally identifying 
information to NICS, solely on an adjudication that a veteran 
has a service-connected disability. Both the ANS to H.R. 3504 
and the amendment to the ANS offered by Representative Roy, 
pertain to benefits administered by the Under Secretary for 
Benefits. Representative Conor Lamb of Pennsylvania, however, 
raised a point of order pertaining to germaneness. Despite the 
Minority's objections to the use of procedure to avoid debating 
and voting on the merits of the amendment, Chairman Takano 
ruled the amendment non-germane. Representative Roy moved to 
appeal Chairman Takano's ruling. However, Representative Lamb 
successfully moved to table the appeal. Representative Lamb's 
motion was agreed to by a recorded vote of 15-12, with 15 
members the Majority voting to end debate on the germaneness of 
the amendment and one member of the Majority joining with 11 
members of the Minority in voting to continue debating the 
germaneness of the amendment.
    The Minority is concerned that veterans might not seek VA 
benefits because they fear they will lose a constitutional 
right. As the National Alliance for Mental Illness states, 
``creating new federal or state gun laws based on mental 
illness could have the effect of creating more barriers to 
people being willing to seek treatment when they need it most. 
Solutions to gun violence associated with mental illness lie in 
improving access to treatment, not in preventing people from 
seeking treatment in the first place.''\2\ Representative Roy's 
amendment would have provided veterans with the assurance that 
their Second Amendment rights are protected if they seek care 
or benefits from VA. The Minority feels strongly that veterans 
with a service-connected mental disability should not be 
stigmatized as dangerous or suicidal because of their 
disability rating. We agree that an individual who a court 
rules is a threat to themselves or to others should not be 
permitted to possess a firearm. However, a VA employee granting 
a compensation claim for PTSD or depression is not the same as 
a judicial ruling or a physician finding that a veteran is a 
danger to himself/herself or society. Equating the threat of 
violence with a mental health diagnosis reinforces dangerous 
stereotypes that can prevent veterans from getting help and 
increase feelings of shame, isolation, and suicidal 
ideation.\3\
---------------------------------------------------------------------------
    \2\https://www.nami.org/leam-more/mental-health-public-policy/
violence-and-gun-reporting-laws.
    \3\U.S. Department of Veterans Affairs, National Strategy for 
Preventing Veteran Suicide: 2018-2028
---------------------------------------------------------------------------
    The Minority disagrees with the manner in which Chairman 
Takano used parliamentary procedure for partisan purposes to 
avoid debating the amendment. Chairman Takano 's decision to 
deny consideration of Representative Roy's amendment is an 
affront to the bipartisan manner this Committee has worked in 
the past to find solutions both sides of the aisle can agree 
on. The Minority would have welcomed ideas from the Majority to 
address the issue Representative Roy's amendment sought to 
correct. Regrettably, the Majority has refused to entertain any 
discussion on the problem created, and acknowledged, by 
Chairman Nadler with passage of H.R. 1112.
    The Minority appreciates Veterans of Foreign Wars of the 
United States, Vietnam Veterans of America, and Heritage Action 
for America for supporting the amendment.

                                   David P. Roe, M.D.
                                           Ranking Member, Committee on 
                                               Veterans' Affairs, House 
                                               of Representatives.