[House Report 116-76]
[From the U.S. Government Publishing Office]


 116th Congress   }                                           {    Report
                           HOUSE OF REPRESENTATIVES
 1st Session      }                                           {    116-76

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

 
  TO AMEND TITLE 38, UNITED STATES CODE, TO EXEMPT TRANSFERS OF FUNDS 
    FROM FEDERAL AGENCIES TO THE DEPARTMENT OF VETERANS AFFAIRS FOR 
NONPROFIT CORPORATIONS ESTABLISHED UNDER SUBCHAPTER IV OF CHAPTER 73 OF 
         SUCH TITLE FROM CERTAIN PROVISIONS OF THE ECONOMY ACT

                                _______
                                

  May 20, 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

                        [To accompany H.R. 1947]

    The Committee on Veterans' Affairs, to whom was referred 
the bill (H.R. 1947) to amend title 38, United States Code, to 
exempt transfers of funds from Federal agencies to the 
Department of Veterans Affairs for nonprofit corporations 
established under subchapter IV of chapter 73 of such title 
from certain provisions of the Economy Act, having considered 
the same, report favorably thereon with amendments and 
recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     2
Purpose and Summary..............................................     3
Background and Need for Legislation..............................     4
Hearings.........................................................     7
Subcommittee Consideration.......................................     9
Committee Consideration..........................................     9
Committee Votes..................................................     9
Committee Oversight Findings.....................................     9
Congressional Budget Office Estimate; Committee Cost Estimate; 
  and New Budget Authority.......................................    10
Statement of General Performance Goals and Objectives............    10
Earmarks and Tax and Tariff Benefits.............................    10
Federal Mandates Statement.......................................    10
Advisory Committee Statement.....................................    10
Constitutional Authority Statement...............................    10
Applicability to Legislative Branch..............................    10
Statement on Duplication of Federal Programs.....................    11
Section-by-Section Analysis of the Legislation...................    11
Changes in Existing Law Made by the Bill as Reported.............    12

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

SECTION 1. EXEMPTION OF CERTAIN TRANSFERS.

  Section 7364(b)(1) of title 38, United States Code, is amended by 
adding at the end the following new sentence: ``Any amounts so 
transferred after September 30, 2016, shall be available without regard 
to fiscal year limitations, notwithstanding section 1535(d) of title 
31.''.

SEC. 2. IMPROVEMENTS TO ASSISTANCE FOR CERTAIN FLIGHT TRAINING AND 
                    OTHER PROGRAMS OF EDUCATION.

  (a) Use of Entitlement for Private Pilot's Licenses.--Section 3034(d) 
of title 38, United States Code, is amended--
          (1) in paragraph (1) by striking the semicolon and inserting 
        the following: ``and is required for the course of education 
        being pursued (including with respect to a dual major, 
        concentration, or other element of a degree); and'';
          (2) by striking paragraph (2); and
          (3) by redesignating paragraph (3) as paragraph (2).
  (b) Accelerated Payments for Flight Training.--Section 3313 of such 
title is amended by adding at the end the following new subsection:
  ``(l) Accelerated Payments for Certain Flight Training.--
          ``(1) Payments.--An individual enrolled in a program of 
        education pursued at a vocational school or institution of 
        higher learning in which flight training is required to earn 
        the degree being pursued (including with respect to a dual 
        major, concentration, or other element of such a degree) may 
        elect to receive accelerated payments of amounts for tuition 
        and fees determined under subsection (c). The amount of each 
        accelerated payment shall be an amount equal to twice the 
        amount for tuition and fee so determined under such subsection, 
        but the total amount of such payments may not exceed the total 
        amount of tuition and fees for the program of education. The 
        amount of monthly stipends shall be determined in accordance 
        with such subsection (c) and may not be accelerated under this 
        paragraph.
          ``(2) Educational counseling.--An individual may make an 
        election under paragraph (1) only if the individual receives 
        educational counseling under section 3697A(a) of this title.
          ``(3) Charge against entitlement.--The number of months of 
        entitlement charged an individual for accelerated payments made 
        pursuant to paragraph (1) shall be determined at the rate of 
        two months for each month in which such an accelerated payment 
        is made.''.
  (c) Flight Training at Public Institutions.--Subsection (c)(1)(A) of 
such section 3313 is amended--
          (1) in clause (i)--
                  (A) by redesignating subclauses (I) and (II) as items 
                (aa) and (bb), respectively;
                  (B) by striking ``In the case of a program of 
                education pursued at a public institution of higher 
                learning'' and inserting ``(I) Subject to subclause 
                (II), in the case of a program of education pursued at 
                a public institution of higher learning not described 
                in clause (ii)(II)(bb)''; and
                  (C) by adding at the end the following new subclause:
                          ``(II) In determining the actual net cost for 
                        in-State tuition and fees pursuant to subclause 
                        (I), the Secretary may not pay for tuition and 
                        fees relating to flight training.''; and
          (2) in clause (ii)--
                  (A) in subclause (I), by redesignating items (aa) and 
                (bb) as subitems (AA) and (BB), respectively;
                  (B) in subclause (II), by redesignating items (aa) 
                and (bb) as subitems (AA) and (BB), respectively;
                  (C) by redesignating subclauses (I) and (II) as items 
                (aa) and (bb), respectively;
                  (D) by striking ``In the case of a program of 
                education pursued at a non-public or foreign 
                institution of higher learning'' and inserting ``(I) In 
                the case of a program of education described in 
                subclause (II)''; and
                  (E) by adding at the end the following new subclause:
                          ``(II) A program of education described in 
                        this subclause is any of the following:
                                  ``(aa) A program of education pursued 
                                at a non-public or foreign institution 
                                of higher learning.
                                  ``(bb) A program of education pursued 
                                at a public institution of higher 
                                learning in which flight training is 
                                required to earn the degree being 
                                pursued (including with respect to a 
                                dual major, concentration, or other 
                                element of such a degree).''.
  (d) Certain Programs of Education Carried Out Under Contract.--
Section 3313(c)(1)(A)(ii)(II) of title 38, United States Code, as added 
by subsection (c)(2)(E), is amended by adding at the end the following 
new item:
                                  ``(cc) A program of education pursued 
                                at a public institution of higher 
                                learning in which the public 
                                institution of higher learning enters 
                                into a contract or agreement with an 
                                entity (other than another public 
                                institution of higher learning) to 
                                provide such program of education or a 
                                portion of such program of 
                                education.''.
  (e) Application.--
          (1) In general.--Except as provided by paragraph (2), the 
        amendments made by this section shall apply with respect to a 
        quarter, semester, or term, as applicable, commencing on or 
        after the date of the enactment of this Act.
          (2) Special rule for current students.--In the case of an 
        individual who, as of the date of the enactment of this Act, is 
        using educational assistance under chapter 33 of title 38, 
        United States Code, to pursue a course of education that 
        includes a program of education described in item (bb) or (cc) 
        of section 3313(c)(1)(A)(ii)(II) of title 38, United States 
        Code, as added by subsections (c) and (d), respectively, the 
        amendment made by such subsection shall apply with respect to a 
        quarter, semester, or term, as applicable, commencing on or 
        after the date that is two years after the date of the 
        enactment of this Act.

SEC. 3. PROVISION OF INSCRIPTIONS FOR SPOUSES AND CHILDREN ON CERTAIN 
                    HEADSTONES AND MARKERS FURNISHED BY THE SECRETARY 
                    OF VETERANS AFFAIRS.

  (a) In General.--Section 2306 of title 38, United States Code, is 
amended by adding at the end the following new subsection:
  ``(j)(1) In addition to any other authority under this section, in 
the case of an individual whose grave is not in a covered cemetery (as 
that term is defined in subsection (f)(2)) and for whom the Secretary 
has furnished a headstone or marker under subsection (a) or (d), the 
Secretary, if feasible and upon request, may replace the headstone or 
marker to add an inscription for the surviving spouse or eligible 
dependent child of such individual following the death of the surviving 
spouse or eligible dependent child.
  ``(2) If the spouse or eligible dependent child of an individual 
referred to in paragraph (1) predeceases the individual, the Secretary 
may, if feasible and upon request, include an inscription for the 
spouse or dependent child on the headstone or marker furnished for the 
individual under subsection (a) or (d).''.
  (b) Application.--Subsection (j) of section 2306 of title 38, United 
States Code, as added by subsection (a), shall apply with respect to an 
individual who dies on or after October 1, 2019.

    Amend the title so as to read:
    A bill to amend title 38, United States Code, to exempt 
transfers of funds from Federal agencies to the Department of 
Veterans Affairs for nonprofit corporations established under 
subchapter IV of chapter 73 of such title from certain 
provisions of the Economy Act, and for other purposes.

                          Purpose and Summary

    H.R. 1947, as amended, would (1) allow funds transferred to 
non-profit corporations established under section 7364 of title 
38 to administer those funds without regard to fiscal year 
limitations; (2) cap the tuition and fee payments for flight 
school training programs at public institutions of higher 
learning under the Post 9/11 G.I. Bill, and (3) authorize VA to 
inscribe information remembering spouses or children on the 
headstones or markers of veterans interred in non-VA 
cemeteries.
    Representative David P. Roe of Tennessee introduced H.R. 
1947 on March 28, 2019.

                  Background and Need for Legislation


                                   I

    The Department of Veterans Affairs (VA) has a statutory 
mission to conduct research to more effectively care for 
veterans and contribute to the nation's understanding of 
disease and disability.\1\ In its more than 90-year history, 
VA's medical and prosthetic research program has led to 
numerous discoveries and advances including the development of 
the pacemaker in 1960\2\ and the approval of the shingles 
vaccine in 2005.\3\
---------------------------------------------------------------------------
    \1\38 USC 7303.
    \2\Hiroko Beck et al., 50th Anniversary of the First Successful 
Permanent Pacemaker Implantation in the United States: Historical 
Review and Future Directions, 106 The American Journal of Cardiology 
(2010).
    \3\MN Oxman et al., A vaccine to prevent herpes zoster and 
postherpetic neuralgia in older adults, N Engl J Med (2005).
---------------------------------------------------------------------------
    In 1988, Congress authorized the establishment of non-
profit corporations (NPCs) at VA medical centers to provide a 
flexible funding mechanism to support VA research.\4\ NPCs are 
non-profit, state-chartered entities that accept and administer 
funds from federal and private sector sources. There are 
currently 83 NPCs affiliated with the VA healthcare system and, 
collectively, they have contributed more than $2 billion to VA 
research over the last ten years.
---------------------------------------------------------------------------
    \4\38 USC Sec.  73, subchapter IV.
---------------------------------------------------------------------------
    Typically, when VA receives research funding from a non-VA 
source--such as the National Institutes of Health or the 
Centers for Disease Control and Prevention--those funds are 
transferred by VA to the NPC to administer. In 2018, however, 
VA's Office of General Counsel uncovered an appropriations law 
limitation that prevents funding from being transferred to the 
NPCs for longer than one fiscal year. This has negatively 
impacted several ongoing, multi-year research projects across 
the country. This legislation would provide explicit authority 
for NPCs to administer amounts transferred to them without 
regard to fiscal year limitations.

                                   II

    Section 102 of the Post-9/11 Veterans Educational 
Assistance Improvements Act of 2010 (P.L. 111-377) modified the 
Post-9/11 G.I. Bill so that students attending public 
institutions of higher learning under the Post-9/11 G.I. Bill 
are eligible to receive the total net cost of in-state tuition 
and fees after the application of tuition and fees waivers, 
scholarships, or other federal, state, institutional, or 
employer-based aid or assistance. Students attending non-public 
institutions of higher learning are eligible for the lesser of 
the tuition and fees net cost after application of waivers, 
scholarships, or $23,805. The cap is also subject to an annual 
cost-of-living-adjustment increase. This was a change from the 
original Post-9/11 G.I. Bill that capped tuition and fees at 
the highest in-state tuition rate per state regardless of 
whether the student was attending a public or non-public 
institution of higher learning.
    At the Subcommittee on Economic Opportunity oversight 
hearing on November 19, 2014, entitled, ``The Role of State 
Approving Agencies in Ensuring Quality Education Programs for 
Veterans,'' the National Association of State Approving 
Agencies (NASAA) testified that it was concerned that changes 
made to the Post 9/11 G.I. Bill were encouraging some public 
institutions to contract with third-party flight schools for 
expensive flight or helicopter training. Since these private 
flight schools contracted with public schools, these private 
contractors were no longer limited in the tuition and fees they 
could charge since the statute only requires that schools 
charge the in-state tuition rate. Consequently, some veterans 
were receiving GI Bill benefits totaling well over $100,000 for 
flight training, far exceeding what would be received if the 
private school cap of $23,805 were applied.
    As part of its legislative package presented to the 
Subcommittee at this hearing, NASAA recommended that the 
Subcommittee try to rein in this extravagant spending and place 
a cap on flight training at public institutions. This same 
sentiment was echoed at this hearing, and subsequent hearings 
during the 115th and 116th Congress, by VA and witnesses 
representing several leading veteran service organizations. In 
its written statement, during the Subcommittee on Economic 
Opportunity hearing on November 11, 2014, VA expressed concern 
that many public schools were using P.L. 111-377 to get around 
the current cap on vocational flight training, stating:

    ``There has been a significant increase in flight training 
centers, specifically those that offer helicopter training, 
which have contracted with public [Institutions of Higher 
Learning (IHLs)] to offer flight-related degrees. Sometimes 
these programs charge higher prices than those that would be 
charged if the student had chosen to attend the vocational 
flight school for the same training. This practice allows the 
flight schools to receive payments above the academic year 
tuition and fee cap imposed by statute, which is currently 
$11,562.86. If those same classes are included in a public IHL 
degree program, VA can pay up to 100 percent of the in-state 
tuition and fee charges. This does not appear to be consistent 
with the intent of Congress as it relates to flight programs.''

    VA also included a legislative proposal in its previous 
budget submissions to place the same cap on flight training as 
is currently in place for private, non-profit, and for-profit 
institutions. As a result of the proposal from VA, as well as 
concerns expressed by NASAA and veterans groups, section 2 
would cap tuition and fee payments for flight training at 
public schools at $23,805, which is the same tuition and fee 
cap for all private for-profit and non-profit institutions. 
Like the cap for-profit and private institutions cap, the 
public school flight school cap would also be subject to the 
cost of living adjustment.
    This section would also prohibit students from taking 
flight training at a public institution as an elective course 
and would grandfather students currently in flight training 
programs for two years following enactment. The Committee 
believes this grandfather clause is important to cover current 
students who enrolled in these programs with the understanding 
that their tuition and fees would be completely paid for under 
the Post-9/11 G.I. Bill. The section also subjects all public 
school third-party contracted programs to the same cap.
    The Committee has carefully studied and debated the 
application of the cap, and understands that application of the 
cap would change the funding model for some flight schools 
under the Post-9/11 G.I. Bill. The Committee, however, is 
concerned that the sharp growth in these programs and the 
undeniable increase in the cost of flight training following 
the enactment of P.L. 111-377 shows that there have been some 
who have found this loophole in the law and exploited it.
    Data supports application of the cap to address 
exploitation by some flight schools. Between FY 2013 and FY 
2014, the number of students taking flight training increased 
by only 171 students, or 9 percent. In comparison, the total 
cost to taxpayers for this program grew by $37 million, or 87 
percent, during this same period. Data also show that in one 
case in FY 2014, VA paid over $534,000 in tuition and flight 
payments for one student that year. In a story in The Los 
Angeles Times on March 15, 2015, entitled, ``U.S. Taxpayers 
Stuck with the Tab as Helicopter Flight Schools Exploit GI Bill 
Loophole,'' the owner of one of these schools essentially 
admitted to exploiting the loophole by stating, ``Because there 
was no cap, we started to one-up each other . . . You kind of 
end up with an arms race.''\5\
---------------------------------------------------------------------------
    \5\Zarembo, Alan. ``U.S. taxpayers stuck with the tab as helicopter 
flight schools exploit GI Bill loophole,'' Los Angeles Times, March 15, 
2015.
---------------------------------------------------------------------------
    Although the Committee understands that many of the past 
abuses in this program have been curtailed due to enforcement 
of existing regulations by VA, there is still no statutory 
limitation that keeps programs like these or other industries 
from taking advantage of this loophole in the future. The 
Committee believes that paying these unrestrained costs was 
never the intent of the Post-9/11 G.I. Bill. By implementing 
this cap, Congress would be curbing the potential for further 
abuse of this program and leveling the playing field for this 
program with the cap on tuition and fee payments authorized for 
private schools.
    The Committee also recognizes that the cost of flight 
training at some institutions can be significantly higher than 
the proposed private school cap. To ensure that flight training 
is still an option for veterans, this section would also 
eliminate the current prohibition on using GI Bill funds to pay 
for training that leads to a private pilot's license. By 
lifting this prohibition, this section would remove a barrier 
to entry to aviation careers while keeping the requirements 
that such training be used towards a goal of receiving training 
towards a vocation in aviation and not be used as elective 
training. The Committee has been told by the flight industry 
that most flight training programs can be completed in two 
years. To help meet the higher cost of flight training and meet 
this compressed timeline, this section would also authorize 
student veterans to accelerate their payments under the Post-9/
11 G.I. Bill for flight training. This means that the students 
could choose to condense their 36 months of eligibility into 18 
months and the amount of tuition and fees that VA would pay per 
year would be double the private school cap. The section would 
require that veterans receive educational counseling provided 
by VA under section 3697A(a) of title 38, U.S.C. to ensure they 
understand the ramifications of their decisions to accelerate 
their benefits.
    Data provided to the Committee on flight training under the 
Post-9/11 G.I. bill in FY 2016, indicated that if the cap on 
tuition and fees were in place, over 60 percent of all students 
would not be affected by the proposed cap and 87 percent would 
be covered by the accelerated payment option if they completed 
their training in two traditional academic years or 18 months. 
The Committee believes these two provisions will help alleviate 
the cost of flight training with the new cap on tuition and 
fees for flight training that would be put in place by this 
section.

                                  III

    Section 3 would amend 38 United States Code (U.S.C.) 
Section 2306 to allow VA to provide inscriptions remembering 
deceased spouses or eligible dependent children on veterans' 
government-furnished headstones or markers in non-covered 
cemeteries. This would include spouses and dependent children 
who predecease the veterans interred in these cemeteries, 
allowing their information to be included on the veterans' 
headstones or markers at time of interment. VA would also be 
authorized to replace, if feasible and upon request, 
previously-furnished headstones or markers for veterans buried 
in non-covered cemeteries with information about the spouses or 
eligible dependent children following their death.
    A covered cemetery is defined under Section 2306 of title 
38 U.S.C. as a national cemetery, a veterans' cemetery of a 
State for which the Department has provided a grant under 
section 2408 of such title, and a veterans' cemetery of a 
tribal organization or on land owned by or held in trust for a 
tribal organization for which the Department has provided a 
grant under section 2408 of such title. Section 3 would permit 
these inscriptions on headstones and markers for veterans 
interred in cemeteries not covered under this definition.
    Section 3 provides VA with the maximum authority it needs 
to work with grieving families to memorialize their loved ones 
in the way they want where they want.
    Every veteran deserves to know their wish to be remembered 
in perpetuity alongside spouses and dependent children will be 
granted. The same is true for spouses and dependent children 
who appreciate the reassurance that they will be memorialized 
with their veteran spouse or parent.
    Whether veterans choose to be laid to rest in national 
veterans' cemeteries, state or tribal cemeteries or in private 
cemeteries, this bill provides the guarantee that those wishes 
will be met.

                                Hearings

    For the purposes of section 103(i) of H. Res. 6 of the 
116th Congress--(1) the following hearings were used to develop 
or consider H.R. 1947, as amended.
    On April 9, 2019, the Subcommittee on Economic Opportunity 
conducted a legislative hearing on various bills introduced 
during the 116th Congress, including Section 2 of H.R. 1947, 
which was considered as a discussion draft ``To amend title 38, 
United States Code, to make certain improvements to the 
educational assistance programs of the Department of Veterans 
Affairs with respect to flight training programs and certain 
other programs of education, and for other purposes.
    The following witnesses testified:
          Ms. Margarita Devlin, Principal Deputy Under 
        Secretary for Benefits, Veterans Benefits 
        Administration, U.S. Department of Veterans Affairs. 
        Ms. Ashlynne Haycock, Deputy Policy Director, Education 
        Support Services, Tragedy Assistance Program for 
        Survivors (TAPS). Mr. Patrick Murray, Deputy Director, 
        National Legislative Service, The Veterans of Foreign 
        Wars. Mr. John Kamin, Credentialing and Education 
        Policy Associate, National Veterans Employment and 
        Education Division, The American Legion. Ms. Rebecca 
        Burgess, Program Manager Citizenship Project, American 
        Enterprise Institute.
    Statements for the record were submitted by:
          Disabled American Veterans
    On May 1, 2019, the Subcommittee on Disability Assistance 
and Memorial Affairs conducted a legislative hearing on various 
bills introduced during the 116th Congress, including H.R. 
1126, the Honoring Veterans' Families Act, which is Section 3 
of H.R. 1947.
    The following witnesses testified:
          The Honorable Mark Takano, U.S. House of 
        Representatives, 41st Congressional District of 
        California; The Honorable David P. Roe, U.S. House of 
        Representatives, 1st Congressional District of 
        Tennessee; The Honorable Conor Lamb, U.S. House of 
        Representatives, 17th Congressional District of 
        Pennsylvania; The Honorable Greg Steube, U.S. House of 
        Representatives, 17th District of Florida; The 
        Honorable Julia Brownley, U.S. House of 
        Representatives, 26th Congressional District of 
        Florida; Mr. Matthew Sullivan, Deputy Under Secretary 
        for Finance and Planning, National Cemetery 
        Administration; accompanied by Mr. Kevin Friel, Deputy 
        Director for Pension and Fiduciary, Veterans Benefits 
        Administration; Dr. Patricia Hastings, Deputy Chief 
        Consultant, Post Deployment Health Service, Veterans 
        Health;
          Mr. Derrick Curtis, Director, Software Testing & 508, 
        Enterprise Portfolio Management Division, Office of 
        Information Technology; Ms. Melanie Brunson, Government 
        Relations Officer, Blinded Veterans Association; Mr. 
        Karl R. Horst, Major General, U.S. Army (Ret), 
        President and Chief Executive Officer, Congressional 
        Medal of Honor Foundation; Ms. Allison Adelle Hedge 
        Coke, Distinguished Professor of Creative Writing, 
        University of California, Riverside; Mr. Carlos 
        Fuentes, Director, National Legislative Service, 
        Veterans of Foreign Wars; Mr. Rick Weidman, Executive 
        Director, Policy and Government Affairs, Vietnam 
        Veterans of America; Mr. Chanin Nuntavong, Veterans 
        Affairs and Rehabilitation Division Director, The 
        American Legion; Mr. Shane L. Liermann, Assistant 
        National Legislative Director, Disabled American 
        Veterans; and Dr. David A. Butler, Director, Office of 
        Military and Veterans Health, Health and Medicine 
        Division, The National Academies of Sciences, 
        Engineering, and Medicine; accompanied by Dr. Ourania 
        Kosti, Senior Program Officer, Principal Investigator, 
        Radiation Effects Research Foundation, The National 
        Academies of Sciences, Engineering, and Medicine.
    Statements for the record were submitted by:
          The Honorable Doug LaMalfa, U.S. House of 
        Representatives, 1st Congressional District of 
        California; Mr. John Wells, Executive Director, The 
        Military-Veterans Advocacy; Mr. Keith Kiefer, National 
        Commander, National Association of Atomic Veterans; Mr. 
        Robert Celestial, SGT, U.S. Army Retired (D.A.V.), 
        Veteran who participated in Enewetak Cleanup; Mr. Ken 
        Brownell, Veteran who participated in Enewetak Cleanup; 
        and The American Federation of Government Employees, 
        AFL-CIO.

                       Subcommittee Consideration

    On May 1, 2019, the Subcommittee on Economic Opportunity 
met in an open markup session, a quorum being present, and 
reported favorably a discussion draft ``To amend title 38, 
United States Code, to make certain improvements to the 
educational assistance programs of the Department of Veterans 
Affairs with respect to flight training programs and certain 
other programs of education, and for other purposes to the 
Committee on Veterans' Affairs by voice vote. This discussion 
draft is section 2 of H.R. 1947, as amended.
    H.R. 1947 was not considered before the Health or 
Disability Assistance and Memorial Affairs Subcommittees.

                        Committee Consideration

    On May 8, 2019, the Full Committee met in an open markup 
session, a quorum being present, and reported favorably H.R. 
1947, as amended, to the House of Representatives by voice 
vote.
    During consideration of the bill, the following amendment 
was considered and agreed to by voice vote:
    An amendment in the nature of a substitute offered by 
Representative David P. Roe of Tennessee that would (1) exempt 
from the Economy Act, the transfer and administration of funds 
by research corporations established by VA; (2) cap the tuition 
and fee payments for flight school training programs at public 
institutions of higher learning under the Post 9/11 G.I. Bill, 
and (3) authorize VA to inscribe information remembering 
spouses or children on the headstones or markers of veterans 
interred in non-VA cemeteries.

                            Committee Votes

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, there were no recorded votes 
taken on amendments or in connection with ordering H.R. 1947, 
as amended, reported to the House. A motion by Ranking Member 
David P. Roe of Tennessee to report H.R. 1947, as amended, 
favorably to the House of Representatives was adopted by voice 
vote.

                      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.

Congressional Budget Office Estimate; Committee Cost Estimate; and New 
                            Budget Authority

    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.

         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 support the research efforts 
performed by VA that advance and improve the provision of 
healthcare and benefits to eligible veterans, provide tuition 
assistance and education benefits to veterans, and support VA's 
mission to honor veterans and their families with lasting 
tributes that commemorate veterans' service and sacrifice.

                  Earmarks and Tax and Tariff Benefits

    H.R. 1947, 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.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates regarding H.R. 1947, 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. 
1947, as amended.

                   Constitutional Authority Statement

    Pursuant to Article I, section 8 of the United States 
Constitution, H.R. 1947, 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. 1947, as amended, does not 
relate to the terms and conditions of employment or access to 
public services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

              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. 1947, 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.

             Section-by-Section Analysis of the Legislation


Section 1. Exemption of certain transfers

    Section 1 of the bill amends section 7364(b)(1) of title 
38, pertaining to the transfer and administration of funds by 
research corporations, to exempt the administration of funds by 
non-profit corporations from certain provisions of the Economy 
Act thus allowing these funds to be expended beyond the fiscal 
year in which the funds were appropriated.

Section 2. Improvements to assistance for certain flight training and 
        other programs of education

     Section 2 would amend subsection 301(a) of the 
Dignified Burial and Other Veterans' Benefits Improvement Act 
of 2012 (P.L. 112-260) to reauthorize the pilot program to 
offer TAP at off-base locations. The section would strike 
``during the two-year period beginning on the date of enactment 
of this Act, the'' and inserting an authorization to conduct 
the pilot program for five years after enactment of this 
section. Additionally, this subsection would strike, ``to 
assess the feasibility and advisability of providing such 
program to eligible individuals at locations other than 
military installations.''
     Section 2 would also amend section 301(c) by 
striking the limitation on the use of this pilot at ``not less 
than three and not more than five states'' and inserting ``not 
less than 50 locations in States (as defined in section 101(20) 
of title 38, U.S.C. In addition, this subparagraph would 
further amend section 301(c)(2) of this act by striking ``at 
least two'' and inserting ``at least 20'' referring to the 
requirement that when DoL chooses locations for the pilot 
program, at least 20 should have high veteran unemployment.
     Section 2 would repeal section 301(f) which 
required a report of the Comptroller General on the pilot 
program that is reauthorized by this section.

Section 3. Provision of inscriptions for spouses and children on 
        certain headstones and markers furnished by the secretary of 
        Veterans Affairs

    Provision of Inscriptions for Spouses and Children on 
Certain Headstones and Markers Furnished by the Secretary of 
Veterans Affairs.
     Allows the Secretary to replace an existing 
headstone for an individual buried at a non-covered VA cemetery 
with a marker adding an inscription for the surviving spouse or 
eligible dependent child following his or her death.
     If the surviving spouse or eligible dependent 
child predeceases the veteran, the Secretary may include his or 
her name on the veteran's headstone in a non-covered VA 
cemetery.
     Authority under this section applies with respect 
to an individual who dies on or after October 1, 2019.

         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, existing law in which no change is 
proposed is shown in roman):

         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




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PART II--GENERAL BENEFITS

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CHAPTER 23--BURIAL BENEFITS

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Sec. 2306. Headstones, markers, and burial receptacles

  (a) The Secretary shall furnish, when requested, appropriate 
Government headstones or markers at the expense of the United 
States for the unmarked graves of the following:
  (1) Any individual buried in a national cemetery or in a post 
cemetery.
  (2) Any individual eligible for burial in a national cemetery 
(but not buried there), except for those persons or classes of 
persons enumerated in section 2402(a)(4), (5), and (6) of this 
title.
  (3) Soldiers of the Union and Confederate Armies of the Civil 
War.
  (4) Any individual described in section 2402(a)(5) of this 
title who is buried in a veterans' cemetery owned by a State or 
a veterans' cemetery owned by a tribal organization or on land 
owned by or held in trust for a tribal organization.
  (5) Any individual who at the time of death was entitled to 
retired pay under chapter 1223 of title 10 or would have been 
entitled to retired pay under that chapter but for the fact 
that the person was under 60 years of age.
  (b)(1) The Secretary shall furnish, when requested, an 
appropriate memorial headstone or marker for the purpose of 
commemorating an eligible individual whose remains are 
unavailable. Such a headstone or marker shall be furnished for 
placement in a national cemetery area reserved for that purpose 
under section 2403 of this title, a veterans' cemetery owned by 
a State, a veterans' cemetery of a tribal organization or on 
land owned by or held in trust for a tribal organization, or, 
in the case of a veteran, in a State, local, or private 
cemetery.
  (2) For purposes of paragraph (1), an eligible individual is 
any of the following:
          (A) A veteran.
          (B) An individual who dies on or after November 11, 
        1998, who is the spouse or surviving spouse of a 
        veteran, or the spouse of a member of the Armed Forces 
        serving on active duty under conditions other than 
        dishonorable, as shown by a statement from a general 
        court-martial convening authority, at the time of the 
        spouse's death if such death occurs before October 1, 
        2024.
          (C) An individual who dies on or after November 11, 
        1998, who is an eligible dependent child of a veteran, 
        or the eligible dependent child of a member of the 
        Armed Forces serving on active duty under conditions 
        other than dishonorable, as shown by a statement from a 
        general court-martial convening authority, at the time 
        of the child's death if such death occurs before 
        October 1, 2024.
  (3) For purposes of paragraph (1), the remains of an 
individual shall be considered to be unavailable if the 
individual's remains--
          (A) have not been recovered or identified;
          (B) were buried at sea, whether by the individual's 
        own choice or otherwise;
          (C) were donated to science; or
          (D) were cremated and the ashes scattered without 
        interment of any portion of the ashes.
  (4) For purposes of this subsection:
          (A) The term ``veteran'' includes an individual who 
        dies in the active military, naval, or air service.
          (B) The term ``surviving spouse'' includes a 
        surviving spouse who had a subsequent remarriage.
  (5) For purposes of this section, the term ``eligible 
dependent child'' means a child--
          (A) who is under 21 years of age, or under 23 years 
        of age if pursuing a course of instruction at an 
        approved educational institution; or
          (B) who is unmarried and became permanently 
        physically or mentally disabled and incapable of self-
        support before reaching 21 years of age, or before 
        reaching 23 years of age if pursuing a course of 
        instruction at an approved educational institution.
  (c) A headstone or marker furnished under subsection (a), 
(b), or (d) of this section may be of any material, including 
but not limited to marble, granite, bronze, or slate, requested 
by the person entitled to request such headstone or marker if 
the material requested is determined by the Secretary (1) to be 
cost effective, and (2) in a case in which the headstone or 
marker is to be placed in a national cemetery, to be 
aesthetically compatible with the area of the cemetery in which 
it is to be placed.
  (d)(1) The Secretary shall furnish, when requested, an 
appropriate Government headstone or marker at the expense of 
the United States for the grave of an individual described in 
paragraph (2) or (5) of subsection (a) who is buried in a 
private cemetery, notwithstanding that the grave is marked by a 
headstone or marker furnished at private expense. Such a 
headstone or marker may be furnished only if the individual 
making the request for the Government headstone or marker 
certifies to the Secretary that the headstone or marker will be 
placed on the grave for which the headstone or marker is 
requested, or, if placement on the grave is impossible or 
impracticable, as close as possible to the grave within the 
grounds of the cemetery in which the grave is located.
  (2) Any headstone or marker furnished under this subsection 
shall be delivered by the Secretary directly to the cemetery 
where the grave is located or to a receiving agent for delivery 
to the cemetery.
  (3) The headstone or marker furnished under this subsection 
shall be the headstone or marker selected by the individual 
making the request from among all the headstones and markers 
made available by the Government for selection.
  (4)(A) In lieu of furnishing a headstone or marker under this 
subsection to a deceased individual described in subparagraph 
(B), the Secretary may furnish, upon request, a medallion or 
other device of a design determined by the Secretary to signify 
the deceased individual's status as a veteran, to be attached 
to a headstone or marker furnished at private expense.
  (B) A deceased individual described in this subsection is an 
individual who--
          (i) served in the Armed Forces on or after April 6, 
        1917; and
          (ii) is eligible for a headstone or marker furnished 
        under paragraph (1) (or would be so eligible but for 
        the date of the death of the individual).
  (5)(A) In carrying out this subsection with respect to a 
deceased individual described in subparagraph (C), the 
Secretary shall furnish, upon request, a headstone or marker 
under paragraph (1) or a medallion under paragraph (4) that 
signifies the deceased's status as a medal of honor recipient.
  (B) If the Secretary furnished a headstone, marker, or 
medallion under paragraph (1) or (4) for a deceased individual 
described in subparagraph (C) that does not signify the 
deceased's status as a medal of honor recipient, the Secretary 
shall, upon request, replace such headstone, marker, or 
medallion with a headstone, marker, or medallion, as the case 
may be, that so signifies the deceased's status as a medal of 
honor recipient.
  (C) A deceased individual described in this subparagraph is a 
deceased individual who--
          (i) served in the Armed Forces on or after April 6, 
        1917;
          (ii) is eligible for a headstone or marker furnished 
        under paragraph (1) or a medallion furnished under 
        paragraph (4) (or would be so eligible for such 
        headstone, marker, or medallion but for the date of the 
        death of the individual); and
          (iii) was awarded the medal of honor under section 
        7271, 8291, or 9271 of title 10 or section 491 of title 
        14 (including posthumously).
  (D) In this paragraph, the term ``medal of honor recipient'' 
means an individual who is awarded the medal of honor under 
section 7271, 8291, or 9271 of title 10 or section 491 of title 
14.
  (e)(1)(A) The Secretary of Veterans Affairs shall provide an 
outer burial receptacle for each new grave in an open cemetery 
under the control of the National Cemetery Administration in 
which remains are interred in a casket.
  (B) The Secretary of the Army may provide an outer burial 
receptacle for such a grave in the Arlington National Cemetery.
  (C) The Secretary of the Interior shall provide an outer 
burial receptacle for each such a grave in an open national 
cemetery administered by the National Park Service.
  (2) The use of outer burial receptacles in a cemetery under 
the control of the National Cemetery Administration, in the 
Arlington National Cemetery, or in a national cemetery 
administered by the National Park Service shall be in 
accordance with regulations or procedures approved by the 
Secretary of Veterans Affairs, the Secretary of the Army, or 
the Secretary of the Interior, respectively.
  (3) Regulations or procedures under paragraph (2) may specify 
that--
          (A) an outer burial receptacle other than a grave 
        liner be provided in lieu of a grave liner at the 
        election of the survivors of the interred veteran; and
          (B) if an outer burial receptacle other than a grave 
        liner is provided in lieu of a grave liner upon an 
        election of such survivors, such survivors be 
        required--
                  (i) to pay the amount by which the cost of 
                the outer burial receptacle exceeds the cost of 
                the grave liner that would otherwise have been 
                provided in the absence of the election; and
                  (ii) to pay the amount of the administrative 
                costs incurred by the Secretary (or the 
                Secretary of the Army with respect to Arlington 
                National Cemetery or the Secretary of the 
                Interior with respect to a national cemetery 
                administered by the National Park Service) in 
                providing the outer burial receptacle in lieu 
                of such grave liner.
  (4) Regulations or procedures under paragraph (2) may provide 
for the use of a voucher system, or other system of 
reimbursement approved by the Secretary (or the Secretary of 
the Army with respect to Arlington National Cemetery or the 
Secretary of the Interior with respect to a national cemetery 
administered by the National Park Service), for payment for 
outer burial receptacles other than grave liners provided under 
such regulations or procedures.
  (f)(1) The Secretary may furnish a casket or urn, of such 
quality as the Secretary considers appropriate for a dignified 
burial, for burial of a deceased veteran in a covered cemetery 
in any case in which the Secretary--
          (A) is unable to identify the veteran's next of kin, 
        if any; and
          (B) determines that sufficient resources for the 
        furnishing of a casket or urn for such burial are not 
        otherwise available.
  (2) The term ``covered cemetery'' means any of the following:
          (A) A national cemetery.
          (B) A veterans' cemetery of a State for which the 
        Department has provided a grant under section 2408 of 
        this title.
          (C) A veterans' cemetery of a tribal organization or 
        on land owned by or held in trust for a tribal 
        organization for which the Department has provided a 
        grant under subsection (f) of such section.
  (g)(1) When the Secretary has furnished a headstone or marker 
under subsection (a) for the unmarked grave of an individual, 
the Secretary shall, if feasible, add a memorial inscription to 
that headstone or marker rather than furnishing a separate 
headstone or marker under that subsection for the surviving 
spouse or eligible dependent child of such individual.
  (2) When the Secretary has furnished a memorial headstone or 
marker under subsection (b) for purposes of commemorating a 
veteran or an individual who died in the active military, 
naval, or air service, the Secretary shall, if feasible, add a 
memorial inscription to that headstone or marker rather than 
furnishing a separate memorial headstone or marker under that 
subsection for the surviving spouse or eligible dependent child 
of such individual.
  (h)(1) A headstone or marker may not be furnished under 
subsection (a) for the unmarked grave of a person described in 
section 2411(b) of this title.
  (2) A memorial headstone or marker may not be furnished under 
subsection (b) for the purpose of commemorating a person 
described in section 2411(b) of this title.
  (3) A headstone or marker may not be furnished under 
subsection (d) for the grave of a person described in section 
2411(b) of this title.
  (4) A casket or urn may not be furnished under subsection (f) 
for burial of a person described in section 2411(b) of this 
title.
  (i) In this section, the term ``tribal organization'' has the 
meaning given such term in section 3765 of this title.
  (j)(1) In addition to any other authority under this section, 
in the case of an individual whose grave is not in a covered 
cemetery (as that term is defined in subsection (f)(2)) and for 
whom the Secretary has furnished a headstone or marker under 
subsection (a) or (d), the Secretary, if feasible and upon 
request, may replace the headstone or marker to add an 
inscription for the surviving spouse or eligible dependent 
child of such individual following the death of the surviving 
spouse or eligible dependent child.
  (2) If the spouse or eligible dependent child of an 
individual referred to in paragraph (1) predeceases the 
individual, the Secretary may, if feasible and upon request, 
include an inscription for the spouse or dependent child on the 
headstone or marker furnished for the individual under 
subsection (a) or (d).

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PART III--READJUSTMENT AND RELATED BENEFITS

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CHAPTER 30--ALL-VOLUNTEER FORCE EDUCATIONAL ASSISTANCE PROGRAM

           *       *       *       *       *       *       *



SUBCHAPTER IV--TIME LIMITATION FOR USE OF ELIGIBILITY AND ENTITLEMENT; 
GENERAL AND ADMINISTRATIVE PROVISIONS

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Sec. 3034. Program administration

  (a)(1) Except as otherwise provided in this chapter, the 
provisions of sections 3470, 3471, 3474, 3476, 3482(g), 3483, 
and 3485 of this title and the provisions of subchapters I and 
II of chapter 36 of this title (with the exception of sections 
3680(c), 3680(f), 3686(a), and 3687) shall be applicable to the 
provision of educational assistance under this chapter.
          (2) The term ``eligible veteran'', as used in the 
        provisions of the sections enumerated in paragraph (1) 
        of this subsection, shall be deemed to include an 
        individual who is eligible for educational assistance 
        under this chapter.
          (3) The Secretary may, without regard to the 
        application to this chapter of so much of the 
        provisions of section 3471 of this title as prohibit 
        the enrollment of an eligible veteran in a program of 
        education in which the veteran is ``already 
        qualified'', and pursuant to such regulations as the 
        Secretary shall prescribe, approve the enrollment of 
        such individual in refresher courses (including courses 
        which will permit such individual to update knowledge 
        and skills or be instructed in the technological 
        advances which have occurred in the individual's field 
        of employment during and since the period of such 
        veteran's active military service), deficiency courses, 
        or other preparatory or special education or training 
        courses necessary to enable the individual to pursue an 
        approved program of education.
  (b) Regulations prescribed by the Secretary of Defense under 
this chapter shall be uniform for the Armed Forces under the 
jurisdiction of the Secretary of a military department.
  (c) Payment of educational assistance allowance in the case 
of an eligible individual pursuing a program of education under 
this chapter on less than a half-time basis shall be made in a 
lump-sum amount for the entire quarter, semester, or term not 
later than the last day of the month immediately following the 
month in which certification is received from the educational 
institution that such individual has enrolled in and is 
pursuing a program at such institution. Such lump-sum payment 
shall be computed at the rate determined under section 3032(b) 
of this title.
  (d) The Secretary may approve the pursuit of flight training 
(in addition to a course of flight training that may be 
approved under section 3680A(b) of this title) by an individual 
entitled to basic educational assistance under this chapter 
if--
          (1) such training is generally accepted as necessary 
        for the attainment of a recognized vocational objective 
        in the field of aviation[;] and is required for the 
        course of education being pursued (including with 
        respect to a dual major, concentration, or other 
        element of a degree); and
          [(2) the individual possesses a valid private pilot 
        certificate and meets, on the day the individual begins 
        a course of flight training, the medical requirements 
        necessary for a commercial pilot certificate; and]
          [(3)] (2) the flight school courses are approved by 
        the Federal Aviation Administration and are offered by 
        a certified pilot school that possesses a valid Federal 
        Aviation Administration pilot school certificate.
  (e)(1) In the case of a member of the Armed Forces who 
participates in basic educational assistance under this 
chapter, the Secretary shall furnish the information described 
in paragraph (2) to each such member. The Secretary shall 
furnish such information as soon as practicable after the basic 
pay of the member has been reduced by $1,200 in accordance with 
section 3011(b) or 3012(c) of this title and at such additional 
times as the Secretary determines appropriate.
          (2) The information referred to in paragraph (1) is 
        information with respect to the benefits, limitations, 
        procedures, eligibility requirements (including time-
        in-service requirements), and other important aspects 
        of the basic educational assistance program under this 
        chapter, including application forms for such basic 
        educational assistance under section 5102 of this 
        title.
          (3) The Secretary shall furnish the forms described 
        in paragraph (2) and other educational materials to 
        educational institutions, training establishments, and 
        military education personnel, as the Secretary 
        determines appropriate.
          (4) The Secretary shall use amounts appropriated for 
        readjustment benefits to carry out this subsection and 
        section 5102 of this title with respect to application 
        forms under that section for basic educational 
        assistance under this chapter.

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CHAPTER 33--POST-9/11 EDUCATIONAL ASSISTANCE

           *       *       *       *       *       *       *



SUBCHAPTER II--EDUCATIONAL ASSISTANCE

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Sec. 3313. Educational assistance: amount; payment

  (a) Payment.--The Secretary shall pay to each individual 
entitled to educational assistance under this chapter who is 
pursuing an approved program of education (other than a program 
covered by subsections (e) and (f)) the amounts specified in 
subsection (c) to meet the expenses of such individual's 
subsistence, tuition, fees, and other educational costs for 
pursuit of such program of education.
  (b) Approved Programs of Education.--A program of education 
is an approved program of education for purposes of this 
chapter if the program of education is approved for purposes of 
chapter 30 (including approval by the State approving agency 
concerned).
  (c) Programs of Education Leading to a Degree Pursued at 
Institutions of Higher Learning on More Than Half-time Basis.--
The amounts payable under this subsection for pursuit of an 
approved program of education leading to a degree at an 
institution of higher learning (as that term is defined in 
section 3452(f)) are amounts as follows:
          (1) In the case of an individual entitled to 
        educational assistance under this chapter by reason of 
        paragraph (1), (2), (9), or (10) of section 3311(b), 
        amounts as follows:
                  (A) An amount equal to the following:
                          (i) [In the case of a program of 
                        education pursued at a public 
                        institution of higher learning] (I) 
                        Subject to subclause (II), in the case 
                        of a program of education pursued at a 
                        public institution of higher learning 
                        not described in clause (ii)(II)(bb), 
                        the actual net cost for in-State 
                        tuition and fees assessed by the 
                        institution for the program of 
                        education after the application of--
                                  [(I)] (aa) any waiver of, or 
                                reduction in, tuition and fees; 
                                and
                                  [(II)] (bb) any scholarship, 
                                or other Federal, State, 
                                institutional, or employer-
                                based aid or assistance (other 
                                than loans and any funds 
                                provided under section 401(b) 
                                of the Higher Education Act of 
                                1965 (20 U.S.C. 1070a(b))) that 
                                is provided directly to the 
                                institution and specifically 
                                designated for the sole purpose 
                                of defraying tuition and fees.
                          (II) In determining the actual net 
                        cost for in-State tuition and fees 
                        pursuant to subclause (I), the 
                        Secretary may not pay for tuition and 
                        fees relating to flight training.
                          (ii) [In the case of a program of 
                        education pursued at a non-public or 
                        foreign institution of higher learning] 
                        (I) In the case of a program of 
                        education described in subclause (II), 
                        the lesser of--
                                  [(I)] (aa) the actual net 
                                cost for tuition and fees 
                                assessed by the institution for 
                                the program of education after 
                                the application of--
                                          [(aa)] (AA) any 
                                        waiver of, or reduction 
                                        in, tuition and fees; 
                                        and
                                          [(bb)] (BB) any 
                                        scholarship, or other 
                                        Federal, State, 
                                        institutional, or 
                                        employer-based aid or 
                                        assistance (other than 
                                        loans and any funds 
                                        provided under section 
                                        401(b) of the Higher 
                                        Education Act of 1965) 
                                        that is provided 
                                        directly to the 
                                        institution and 
                                        specifically designated 
                                        for the sole purpose of 
                                        defraying tuition and 
                                        fees; or
                                  [(II)] (bb) the amount equal 
                                to--
                                          [(aa)] (AA) for the 
                                        academic year beginning 
                                        on August 1, 2011, 
                                        $17,500; or
                                          [(bb)] (BB) for an 
                                        academic year beginning 
                                        on any subsequent 
                                        August 1, the amount 
                                        for the previous 
                                        academic year beginning 
                                        on August 1 under this 
                                        subclause, as increased 
                                        by the percentage 
                                        increase equal to the 
                                        most recent percentage 
                                        increase determined 
                                        under section 3015(h).
                          (II) A program of education described 
                        in this subclause is any of the 
                        following:
                                  (aa) A program of education 
                                pursued at a non-public or 
                                foreign institution of higher 
                                learning.
                                  (bb) A program of education 
                                pursued at a public institution 
                                of higher learning in which 
                                flight training is required to 
                                earn the degree being pursued 
                                (including with respect to a 
                                dual major, concentration, or 
                                other element of such a 
                                degree).
                                  (cc) A program of education 
                                pursued at a public institution 
                                of higher learning in which the 
                                public institution of higher 
                                learning enters into a contract 
                                or agreement with an entity 
                                (other than another public 
                                institution of higher learning) 
                                to provide such program of 
                                education or a portion of such 
                                program of education.
                  (B) A monthly stipend in an amount as 
                follows:
                          (i) Except as provided in clauses 
                        (ii) and (iii), for each month an 
                        individual pursues a program of 
                        education on more than a half-time 
                        basis, a monthly housing stipend equal 
                        to the product of--
                                  (I) the monthly amount of the 
                                basic allowance for housing 
                                payable under section 403 of 
                                title 37 for a member with 
                                dependents in pay grade E-5 
                                residing in the military 
                                housing area that encompasses 
                                all or the majority portion of 
                                the ZIP code area in which is 
                                located the campus of the 
                                institution of higher learning 
                                where the individual physically 
                                participates in a majority of 
                                classes, multiplied by
                                  (II) the lesser of--
                                          (aa) 1.0; or
                                          (bb) the number of 
                                        course hours borne by 
                                        the individual in 
                                        pursuit of the program 
                                        of education, divided 
                                        by the minimum number 
                                        of course hours 
                                        required for full-time 
                                        pursuit of the program 
                                        of education, rounded 
                                        to the nearest multiple 
                                        of 10.
                          (ii) In the case of an individual 
                        pursuing a program of education at a 
                        foreign institution of higher learning 
                        on more than a half-time basis, for 
                        each month the individual pursues the 
                        program of education, a monthly housing 
                        stipend equal to the product of--
                                  (I) the national average of 
                                the monthly amount of the basic 
                                allowance for housing payable 
                                under section 403 of title 37 
                                for a member with dependents in 
                                pay grade E-5, multiplied by
                                  (II) the lesser of--
                                          (aa) 1.0; or
                                          (bb) the number of 
                                        course hours borne by 
                                        the individual in 
                                        pursuit of the program 
                                        of education, divided 
                                        by the minimum number 
                                        of course hours 
                                        required for full-time 
                                        pursuit of the program 
                                        of education, rounded 
                                        to the nearest multiple 
                                        of 10.
                          (iii) In the case of an individual 
                        pursuing a program of education solely 
                        through distance learning on more than 
                        a half-time basis, a monthly housing 
                        stipend equal to 50 percent of the 
                        amount payable under clause (ii) if the 
                        individual were otherwise entitled to a 
                        monthly housing stipend under that 
                        clause for pursuit of the program of 
                        education.
                          (iv) For the first month of each 
                        quarter, semester, or term, as 
                        applicable, of the program of education 
                        pursued by the individual, a lump sum 
                        amount for books, supplies, equipment, 
                        and other educational costs with 
                        respect to such quarter, semester, or 
                        term in the amount equal to--
                                  (I) $1,000, multiplied by
                                  (II) the fraction which is 
                                the portion of a complete 
                                academic year under the program 
                                of education that such quarter, 
                                semester, or term constitutes.
          (2) In the case of an individual entitled to 
        educational assistance under this chapter by reason of 
        section 3311(b)(3), amounts equal to 90 percent of the 
        amounts that would be payable to the individual under 
        paragraph (1) for the program of education if the 
        individual were entitled to amounts for the program of 
        education under paragraph (1) rather than this 
        paragraph.
          (3) In the case of an individual entitled to 
        educational assistance under this chapter by reason of 
        section 3311(b)(4), amounts equal to 80 percent of the 
        amounts that would be payable to the individual under 
        paragraph (1) for the program of education if the 
        individual were entitled to amounts for the program of 
        education under paragraph (1) rather than this 
        paragraph.
          (4) In the case of an individual entitled to 
        educational assistance under this chapter by reason of 
        section 3311(b)(5), amounts equal to 70 percent of the 
        amounts that would be payable to the individual under 
        paragraph (1) for the program of education if the 
        individual were entitled to amounts for the program of 
        education under paragraph (1) rather than this 
        paragraph.
          (5) In the case of an individual entitled to 
        educational assistance under this chapter by reason of 
        section 3311(b)(6), amounts equal to 60 percent of the 
        amounts that would be payable to the individual under 
        paragraph (1) for the program of education if the 
        individual were entitled to amounts for the program of 
        education under paragraph (1) rather than this 
        paragraph.
          (6) In the case of an individual entitled to 
        educational assistance under this chapter by reason of 
        section 3311(b)(7), amounts equal to 50 percent of the 
        amounts that would be payable to the individual under 
        paragraph (1) for the program of education if the 
        individual were entitled to amounts for the program of 
        education under paragraph (1) rather than this 
        paragraph.
          (7) In the case of an individual entitled to 
        educational assistance under this chapter by reason of 
        section 3311(b)(8), amounts equal to 40 percent of the 
        amounts that would be payable to the individual under 
        paragraph (1) for the program of education if the 
        individual were entitled to amounts for the program of 
        education under paragraph (1) rather than this 
        paragraph.
  (d) Frequency of Payment.--
          (1) Quarter, semester, or term payments.--Payment of 
        the amounts payable under subsection (c)(1)(A), and of 
        similar amounts payable under paragraphs (2) through 
        (7) of subsection (c), for pursuit of a program of 
        education shall be made for the entire quarter, 
        semester, or term, as applicable, of the program of 
        education.
          (2) Monthly payments.--Payment of the amount payable 
        under subsection (c)(1)(B), and of similar amounts 
        payable under paragraphs (2) through (7) of subsection 
        (c), for pursuit of a program of education shall be 
        made on a monthly basis.
          (3) Regulations.--The Secretary shall prescribe in 
        regulations methods for determining the number of 
        months (including fractions thereof) of entitlement of 
        an individual to educational assistance under this 
        chapter that are chargeable under this chapter for an 
        advance payment of amounts under paragraphs (1) and (2) 
        for pursuit of a program of education on a quarter, 
        semester, term, or other basis.
  (e) Programs of Education Leading to a Degree Pursued on 
Active Duty on More Than Half-time Basis.--
          (1) In general.--Educational assistance is payable 
        under this chapter for pursuit of an approved program 
        of education leading to a degree while on active duty.
          (2) Amount of assistance.--The amounts of educational 
        assistance payable under this chapter to an individual 
        pursuing a program of education leading to a degree 
        while on active duty are as follows:
                  (A) Subject to subparagraph (C), an amount 
                equal to the lesser of--
                          (i) in the case of a program of 
                        education pursued at a public 
                        institution of higher learning, the 
                        actual net cost for in-State tuition 
                        and fees assessed by the institution 
                        for the program of education after the 
                        application of--
                                  (I) any waiver of, or 
                                reduction in, tuition and fees; 
                                and
                                  (II) any scholarship, or 
                                other Federal, State, 
                                institutional, or employer-
                                based aid or assistance (other 
                                than loans and any funds 
                                provided under section 401(b) 
                                of the Higher Education Act of 
                                1965 (20 U.S.C. 1070a(b))) that 
                                is provided directly to the 
                                institution and specifically 
                                designated for the sole purpose 
                                of defraying tuition and fees;
                          (ii) in the case of a program of 
                        education pursued at a non-public or 
                        foreign institution of higher learning, 
                        the lesser of--
                                  (I) the actual net cost for 
                                tuition and fees assessed by 
                                the institution for the program 
                                of education after the 
                                application of--
                                          (aa) any waiver of, 
                                        or reduction in, 
                                        tuition and fees; and
                                          (bb) any scholarship, 
                                        or other Federal, 
                                        State, institutional, 
                                        or employer-based aid 
                                        or assistance (other 
                                        than loans and any 
                                        funds provided under 
                                        section 401(b) of the 
                                        Higher Education Act of 
                                        1965) that is provided 
                                        directly to the 
                                        institution and 
                                        specifically designated 
                                        for the sole purpose of 
                                        defraying tuition and 
                                        fees; or
                                  (II) the amount equal to--
                                          (aa) for the academic 
                                        year beginning on 
                                        August 1, 2011, 
                                        $17,500; or
                                          (bb) for an academic 
                                        year beginning on any 
                                        subsequent August 1, 
                                        the amount for the 
                                        previous academic year 
                                        beginning on August 1 
                                        under this subclause, 
                                        as increased by the 
                                        percentage increase 
                                        equal to the most 
                                        recent percentage 
                                        increase determined 
                                        under section 3015(h); 
                                        or
                          (iii) the amount of the charges of 
                        the educational institution as elected 
                        by the individual in the manner 
                        specified in section 3014(b)(1).
                  (B) Subject to subparagraph (C), for the 
                first month of each quarter, semester, or term, 
                as applicable, of the program of education 
                pursued by the individual, a lump sum amount 
                for books, supplies, equipment, and other 
                educational costs with respect to such quarter, 
                semester, or term in the amount equal to--
                          (i) $1,000, multiplied by
                          (ii) the fraction of a complete 
                        academic year under the program of 
                        education that such quarter, semester, 
                        or term constitutes.
                  (C) In the case of an individual entitled to 
                educational assistance by reason of paragraphs 
                (3) through (8) of section 3311(b), the amounts 
                payable to the individual pursuant to 
                subparagraphs (A)(i), (A)(ii), and (B) shall be 
                the amounts otherwise determined pursuant to 
                such subparagraphs multiplied by the same 
                percentage applicable to the monthly amounts 
                payable to the individual under paragraphs (2) 
                through (7) of subsection (c).
          (3) Quarter, semester, or term payments.--Payment of 
        the amount payable under paragraph (2) for pursuit of a 
        program of education shall be made for the entire 
        quarter, semester, or term, as applicable, of the 
        program of education.
          (4) Monthly payments.--For each month (as determined 
        pursuant to the methods prescribed under subsection 
        (d)(3)) for which amounts are paid an individual under 
        this subsection, the entitlement of the individual to 
        educational assistance under this chapter shall be 
        charged at the rate of one month for each such month.
  (f) Programs of Education Pursued on Half-Time Basis or 
Less.--
          (1) In general.--Educational assistance is payable 
        under this chapter for pursuit of an approved program 
        of education on half-time basis or less whether a 
        program of education pursued on active duty, a program 
        of education leading to a degree, or a program of 
        education other than a program of education leading to 
        a degree.
          (2) Amount of assistance.--The educational assistance 
        payable under this chapter to an individual pursuing a 
        program of education covered by this subsection on 
        half-time basis or less is the amounts as follows:
                  (A) The amount equal to the lesser of--
                          (i) the actual net cost for in-State 
                        tuition and fees assessed by the 
                        institution of higher learning for the 
                        program of education after the 
                        application of--
                                  (I) any waiver of, or 
                                reduction in, tuition and fees; 
                                and
                                  (II) any scholarship, or 
                                other Federal, State, 
                                institutional, or employer-
                                based aid or assistance (other 
                                than loans and any funds 
                                provided under section 401(b) 
                                of the Higher Education Act of 
                                1965 (20 U.S.C. 1070a(b))) that 
                                is provided directly to the 
                                institution and specifically 
                                designated for the sole purpose 
                                of defraying tuition and fees; 
                                or
                          (ii) the maximum amount that would be 
                        payable to the individual for the 
                        program of education under paragraph 
                        (1)(A) of subsection (c), or under the 
                        provisions of paragraphs (2) through 
                        (7) of subsection (c) applicable to the 
                        individual, for the program of 
                        education if the individual were 
                        entitled to amounts for the program of 
                        education under subsection (c) rather 
                        than this subsection.
                  (B) A stipend in an amount equal to the 
                amount of the appropriately reduced amount of 
                the lump sum amount for books, supplies, 
                equipment, and other educational costs 
                otherwise payable to the individual under 
                subsection (c).
          (3) Quarter, term, or semester payments.--Payment of 
        the amounts payable to an individual under paragraph 
        (2) for pursuit of a program of education on half-time 
        basis or less shall be made for the entire quarter, 
        semester, or term, as applicable, of the program of 
        education.
          (4) Monthly payments.--For each month (as determined 
        pursuant to the methods prescribed under subsection 
        (d)(3)) for which amounts are paid an individual under 
        this subsection, the entitlement of the individual to 
        educational assistance under this chapter shall be 
        charged at a percentage of a month equal to--
                  (A) the number of course hours borne by the 
                individual in pursuit of the program of 
                education involved, divided by
                  (B) the number of course hours for full-time 
                pursuit of such program of education.
  (g) Programs of Education Other Than Programs of Education 
Leading to a Degree.--
          (1) In general.--Educational assistance is payable 
        under this chapter for pursuit of an approved program 
        of education other than a program of education leading 
        to a degree at an institution other than an institution 
        of higher learning (as that term is defined in section 
        3452(f)).
          (2) Pursuit on half-time basis or less.--The payment 
        of educational assistance under this chapter for 
        pursuit of a program of education otherwise described 
        in paragraph (1) on a half-time basis or less is 
        governed by subsection (f).
          (3) Amount of assistance.--The amounts of educational 
        assistance payable under this chapter to an individual 
        entitled to educational assistance under this chapter 
        who is pursuing an approved program of education 
        covered by this subsection are as follows:
                  (A) In the case of an individual enrolled in 
                a program of education (other than a program 
                described in subparagraphs (B) through (D)) in 
                pursuit of a certificate or other non-college 
                degree, the following:
                          (i) Subject to clause (iv), an amount 
                        equal to the lesser of--
                                  (I) the actual net cost for 
                                in-State tuition and fees 
                                assessed by the institution 
                                concerned for the program of 
                                education after the application 
                                of--
                                          (aa) any waiver of, 
                                        or reduction in, 
                                        tuition and fees; and
                                          (bb) any scholarship, 
                                        or other Federal, 
                                        State, institutional, 
                                        or employer-based aid 
                                        or assistance (other 
                                        than loans and any 
                                        funds provided under 
                                        section 401(b) of the 
                                        Higher Education Act of 
                                        1965 (20 U.S.C. 
                                        1070a(b))) that is 
                                        provided directly to 
                                        the institution and 
                                        specifically designated 
                                        for the sole purpose of 
                                        defraying tuition and 
                                        fees; or
                                  (II) the amount equal to--
                                          (aa) for the academic 
                                        year beginning on 
                                        August 1, 2011, 
                                        $17,500; or
                                          (bb) for an academic 
                                        year beginning on any 
                                        subsequent August 1, 
                                        the amount for the 
                                        previous academic year 
                                        beginning on August 1 
                                        under this subclause, 
                                        as increased by the 
                                        percentage increase 
                                        equal to the most 
                                        recent percentage 
                                        increase determined 
                                        under section 3015(h).
                          (ii) Except in the case of an 
                        individual pursuing a program of 
                        education on a half-time or less basis 
                        and subject to clause (iv), a monthly 
                        housing stipend equal to the product--
                                  (I) of--
                                          (aa) in the case of 
                                        an individual pursuing 
                                        resident training, the 
                                        monthly amount of the 
                                        basic allowance for 
                                        housing payable under 
                                        section 403 of title 37 
                                        for a member with 
                                        dependents in pay grade 
                                        E-5 residing in the 
                                        military housing area 
                                        that encompasses all or 
                                        the majority portion of 
                                        the ZIP code area in 
                                        which is located the 
                                        campus of the 
                                        institution of where 
                                        the individual 
                                        physically participates 
                                        in a majority of 
                                        classes; or
                                          (bb) in the case of 
                                        an individual pursuing 
                                        a program of education 
                                        through distance 
                                        learning, a monthly 
                                        amount equal to 50 
                                        percent of the amount 
                                        payable under item 
                                        (aa), multiplied by
                                  (II) the lesser of--
                                          (aa) 1.0; or
                                          (bb) the number of 
                                        course hours borne by 
                                        the individual in 
                                        pursuit of the program 
                                        of education involved, 
                                        divided by the minimum 
                                        number of course hours 
                                        required for full-time 
                                        pursuit of such program 
                                        of education, rounded 
                                        to the nearest multiple 
                                        of 10.
                          (iii) Subject to clause (iv), a 
                        monthly stipend in an amount equal to 
                        $83 for each month (or pro rata amount 
                        for a partial month) of training 
                        pursued for books, supplies, equipment, 
                        and other educational costs.
                          (iv) In the case of an individual 
                        entitled to educational assistance by 
                        reason of paragraphs (3) through (8) of 
                        section 3311(b), the amounts payable 
                        pursuant to clauses (i), (ii), and 
                        (iii) shall be the amounts otherwise 
                        determined pursuant to such clauses 
                        multiplied by the same percentage 
                        applicable to the monthly amounts 
                        payable to the individual under 
                        paragraphs (2) through (7) of 
                        subsection (c).
                  (B) In the case of an individual pursuing a 
                full-time program of apprenticeship or other 
                on-job training, amounts as follows:
                          (i) Subject to clauses (iii) and 
                        (iv), for each month the individual 
                        pursues the program of education, a 
                        monthly housing stipend equal to--
                                  (I) during the first six-
                                month period of the program, 
                                the monthly amount of the basic 
                                allowance for housing payable 
                                under section 403 of title 37 
                                for a member with dependents in 
                                pay grade E-5 residing in the 
                                military housing area that 
                                encompasses all or the majority 
                                portion of the ZIP code area in 
                                which is located the employer 
                                at which the individual pursues 
                                such program;
                                  (II) during the second six-
                                month period of the program, 80 
                                percent of the monthly amount 
                                of the basic allowance for 
                                housing payable as described in 
                                subclause (I);
                                  (III) during the third six-
                                month period of the program, 60 
                                percent of the monthly amount 
                                of the basic allowance for 
                                housing payable as described in 
                                subclause (I);
                                  (IV) during the fourth six-
                                month period of such program, 
                                40 percent of the monthly 
                                amount of the basic allowance 
                                for housing payable as 
                                described in subclause (I); and
                                  (V) during any month after 
                                the first 24 months of such 
                                program, 20 percent of the 
                                monthly amount of the basic 
                                allowance for housing payable 
                                as described in subclause (I).
                          (ii) Subject to clauses (iii) and 
                        (iv), a monthly stipend in an amount 
                        equal to $83 for each month (or pro 
                        rata amount for each partial month) of 
                        training pursued for books supplies, 
                        equipment, and other educational costs.
                          (iii) In the case of an individual 
                        entitled to educational assistance by 
                        reason of paragraphs (3) through (8) of 
                        sections 3311(b), the amounts payable 
                        pursuant to clauses (i) and (ii) shall 
                        be the amounts otherwise determined 
                        pursuant to such clauses multiplied by 
                        the same percentage applicable to the 
                        monthly amounts payable to the 
                        individual under paragraphs (2) through 
                        (7) of subsection (c).
                          (iv) In any month in which an 
                        individual pursuing a program of 
                        education consisting of a program of 
                        apprenticeship or other on-job training 
                        fails to complete 120 hours of 
                        training, the amount of monthly 
                        educational assistance allowance 
                        payable under clauses (i) and (iii) to 
                        the individual shall be limited to the 
                        same proportion of the applicable rate 
                        determined under this subparagraph as 
                        the number of hours worked during such 
                        month, rounded to the nearest eight 
                        hours, bears to 120 hours.
                  (C) In the case of an individual enrolled in 
                a program of education consisting of flight 
                training (regardless of the institution 
                providing such program of education), an amount 
                equal to--
                          (i) the lesser of--
                                  (I) the actual net cost for 
                                in-State tuition and fees 
                                assessed by the institution 
                                concerned for the program of 
                                education after the application 
                                of--
                                          (aa) any waiver of, 
                                        or reduction in, 
                                        tuition and fees; and
                                          (bb) any scholarship, 
                                        or other Federal, 
                                        State, institutional, 
                                        or employer-based aid 
                                        or assistance (other 
                                        than loans and any 
                                        funds provided under 
                                        section 401(b) of the 
                                        Higher Education Act of 
                                        1965) that is provided 
                                        directly to the 
                                        institution and 
                                        specifically designated 
                                        for the sole purpose of 
                                        defraying tuition and 
                                        fees; or
                                  (II) the amount equal to--
                                          (aa) for the academic 
                                        year beginning on 
                                        August 1, 2011, 
                                        $10,000; or
                                          (bb) for an academic 
                                        year beginning on any 
                                        subsequent August 1, 
                                        the amount for the 
                                        previous academic year 
                                        beginning on August 1 
                                        under this subclause, 
                                        as increased by the 
                                        percentage increase 
                                        equal to the most 
                                        recent percentage 
                                        increase determined 
                                        under section 3015(h), 
                                        multiplied by--
                          (ii) either--
                                  (I) in the case of an 
                                individual entitled to 
                                educational assistance by 
                                reason of paragraphs (1), (2), 
                                or (9) of section 3311(b), 100 
                                percent; or
                                  (II) in the case of an 
                                individual entitled to 
                                educational assistance by 
                                reason of paragraphs (3) 
                                through (8) of section 3311(b), 
                                the same percentage as would 
                                otherwise apply to the monthly 
                                amounts payable to the 
                                individual under paragraphs (2) 
                                through (7) of subsection (c).
                  (D) In the case of an individual enrolled in 
                a program of education that is pursued 
                exclusively by correspondence (regardless of 
                the institution providing such program of 
                education), an amount equal to--
                          (i) the lesser of--
                                  (I) the actual net cost for 
                                tuition and fees assessed by 
                                the institution concerned for 
                                the program of education after 
                                the application of--
                                          (aa) any waiver of, 
                                        or reduction in, 
                                        tuition and fees; and
                                          (bb) any scholarship, 
                                        or other Federal, 
                                        State, institutional, 
                                        or employer-based aid 
                                        or assistance (other 
                                        than loans and any 
                                        funds provided under 
                                        section 401(b) of the 
                                        Higher Education Act of 
                                        1965) that is provided 
                                        directly to the 
                                        institution and 
                                        specifically designated 
                                        for the sole purpose of 
                                        defraying tuition and 
                                        fees.
                                  (II) the amount equal to--
                                          (aa) for the academic 
                                        year beginning on 
                                        August 1, 2011, $8,500; 
                                        or
                                          (bb) for an academic 
                                        year beginning on any 
                                        subsequent August 1, 
                                        the amount for the 
                                        previous academic year 
                                        beginning on August 1 
                                        under this subclause, 
                                        as increased by the 
                                        percentage increase 
                                        equal to the most 
                                        recent percentage 
                                        increase determined 
                                        under section 3015(h), 
                                        multiplied by--
                          (ii) either--
                                  (I) in the case of an 
                                individual entitled to 
                                educational assistance by 
                                reason of paragraphs (1), (2), 
                                or (9) of section 3311(b), 100 
                                percent; or
                                  (II) in the case of an 
                                individual entitled to 
                                educational assistance by 
                                reason of paragraphs (3) 
                                through (8) of section 3311(b), 
                                the same percentage as would 
                                otherwise apply to the monthly 
                                amounts payable to the 
                                individual under paragraphs (2) 
                                through (7) of subsection (c).
          (4) Frequency of payment.--
                  (A) Quarter, semester, or term payments.--
                Payment of the amounts payable under paragraph 
                (3)(A)(i) for pursuit of a program of education 
                shall be made for the entire quarter, semester, 
                or term, as applicable, of the program of 
                education.
                  (B) Monthly payments.--Payment of the amounts 
                payable under paragraphs (3)(A)(ii) and 
                (3)(B)(i) for pursuit of a program of education 
                shall be made on a monthly basis.
                  (C) Lump sum payments.--
                          (i) Payment for the amount payable 
                        under paragraphs (3)(A)(iii) and 
                        (3)(B)(ii) shall be paid to the 
                        individual for the first month of each 
                        quarter, semester, or term, as 
                        applicable, of the program education 
                        pursued by the individual.
                          (ii) Payment of the amount payable 
                        under paragraph (3)(C) for pursuit of a 
                        program of education shall be made upon 
                        receipt of certification for training 
                        completed by the individual and 
                        serviced by the training facility.
                  (D) Quarterly payments.--Payment of the 
                amounts payable under paragraph (3)(D) for 
                pursuit of a program of education shall be made 
                quarterly on a pro rata basis for the lessons 
                completed by the individual and serviced by the 
                institution.
          (5) Charge against entitlement for certificate and 
        other non-college degree programs.--
                  (A) In general.--In the case of amounts paid 
                under paragraph (3)(A)(i) for pursuit of a 
                program of education, the charge against 
                entitlement to educational assistance under 
                this chapter of the individual for whom such 
                payment is made shall be one month for each 
                of--
                          (i) the amount so paid, divided by
                          (ii) subject to subparagraph (B), the 
                        amount equal to one-twelfth of the 
                        amount applicable in the academic year 
                        in which the payment is made under 
                        paragraph (3)(A)(i)(II).
                  (B) Pro rata adjustment based on certain 
                eligibility.--If the amount otherwise payable 
                with respect to an individual under paragraph 
                (3)(A)(i) is subject to a percentage adjustment 
                under paragraph (3)(A)(iv), the amount 
                applicable with respect to the individual under 
                subparagraph (A)(ii) shall be the amount 
                otherwise determined pursuant to such 
                subparagraph subject to a percentage adjustment 
                equal to the percentage adjustment applicable 
                with respect to the individual under paragraph 
                (3)(A)(iv).
  (h) Payment of Established Charges to Educational 
Institutions.--Amounts payable under subsections (c)(1)(A) (and 
of similar amounts payable under paragraphs (2) through (7) of 
subsection (c)), (e)(2), and (f)(2)(A), and under subparagraphs 
(A)(i), (C), and (D) of subsection (g)(3), shall be paid 
directly to the educational institution concerned.
  (i) Determination of Housing Stipend Payments for Academic 
Years.--Any monthly housing stipend payable under this section 
during the academic year beginning on August 1 of a calendar 
year shall be determined utilizing rates for basic allowances 
for housing payable under section 403 of title 37 in effect as 
of January 1 of such calendar year.
  (j) Determination of Monthly Housing Stipends During Active 
Duty Service.--For any month during which an individual who is 
entitled to a monthly housing stipend under this section is 
performing active duty service, the Secretary shall determine 
the amount of such stipend payable to such individual for such 
month on a pro rata basis for the period of such month during 
which the individual is not performing active duty service.
  (k) Provision of Housing Stipend Payment Information.--
          (1) In general.--The Secretary shall furnish to 
        individuals receiving educational assistance under this 
        chapter documentation that verifies the amount of the 
        monthly housing stipend the individual receives under 
        this section.
          (2) Manner.--The Secretary shall make such 
        documentation available to the individual using an 
        internet website in the same manner the Secretary 
        provides documentation verifying compensation and other 
        benefits furnished by the Secretary to individuals.
  (l) Accelerated Payments for Certain Flight Training.--
          (1) Payments.--An individual enrolled in a program of 
        education pursued at a vocational school or institution 
        of higher learning in which flight training is required 
        to earn the degree being pursued (including with 
        respect to a dual major, concentration, or other 
        element of such a degree) may elect to receive 
        accelerated payments of amounts for tuition and fees 
        determined under subsection (c). The amount of each 
        accelerated payment shall be an amount equal to twice 
        the amount for tuition and fee so determined under such 
        subsection, but the total amount of such payments may 
        not exceed the total amount of tuition and fees for the 
        program of education. The amount of monthly stipends 
        shall be determined in accordance with such subsection 
        (c) and may not be accelerated under this paragraph.
          (2) Educational counseling.--An individual may make 
        an election under paragraph (1) only if the individual 
        receives educational counseling under section 3697A(a) 
        of this title.
          (3) Charge against entitlement.--The number of months 
        of entitlement charged an individual for accelerated 
        payments made pursuant to paragraph (1) shall be 
        determined at the rate of two months for each month in 
        which such an accelerated payment is made.

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PART V--BOARDS, ADMINISTRATIONS, AND SERVICES

           *       *       *       *       *       *       *


CHAPTER 73--VETERANS HEALTH ADMINISTRATION--ORGANIZATION AND FUNCTIONS

           *       *       *       *       *       *       *



SUBCHAPTER IV--RESEARCH CORPORATIONS

           *       *       *       *       *       *       *



Sec. 7364. General powers

  (a) In General.--(1) A corporation established under this 
subchapter may, solely to carry out the purposes of this 
subchapter--
                  (A) accept, administer, retain, and spend 
                funds derived from gifts, contributions, 
                grants, fees, reimbursements, and bequests from 
                individuals and public and private entities;
                  (B) enter into contracts and agreements with 
                individuals and public and private entities;
                  (C) subject to paragraph (2), set fees for 
                education and training facilitated under 
                section 7362 of this title, and receive, 
                retain, administer, and spend funds in 
                furtherance of such education and training;
                  (D) reimburse amounts to the applicable 
                appropriation account of the Department for the 
                Office of General Counsel for any expenses of 
                that Office in providing legal services 
                attributable to research and education 
                agreements under this subchapter; and
                  (E) employ such employees as the corporation 
                considers necessary for such purposes and fix 
                the compensation of such employees.
          (2) Fees charged pursuant to paragraph (1)(C) for 
        education and training described in that paragraph to 
        individuals who are officers or employees of the 
        Department may not be paid for by any funds 
        appropriated to the Department.
          (3) Amounts reimbursed to the Office of General 
        Counsel under paragraph (1)(D) shall be available for 
        use by the Office of the General Counsel only for staff 
        and training, and related travel, for the provision of 
        legal services described in that paragraph and shall 
        remain available for such use without fiscal year 
        limitation.
  (b) Transfer and Administration of Funds.--(1) Except as 
provided in paragraph (2), any funds received by the Secretary 
for the conduct of research or education at a Department 
medical center or centers, other than funds appropriated to the 
Department, may be transferred to and administered by a 
corporation established under this subchapter for such 
purposes. Any amounts so transferred after September 30, 2016, 
shall be available without regard to fiscal year limitations, 
notwithstanding section 1535(d) of title 31.
          (2) A Department medical center may reimburse the 
        corporation for all or a portion of the pay, benefits, 
        or both of an employee of the corporation who is 
        assigned to the Department medical center if the 
        assignment is carried out pursuant to subchapter VI of 
        chapter 33 of title 5.
          (3) A Department medical center may retain and use 
        funds provided to it by a corporation established under 
        this subchapter. Such funds shall be credited to the 
        applicable appropriation account of the Department and 
        shall be available, without fiscal year limitation, for 
        the purposes of that account.
  (c) Research Projects.--Except for reasonable and usual 
preliminary costs for project planning before its approval, a 
corporation established under this subchapter may not spend 
funds for a research project unless the project is approved in 
accordance with procedures prescribed by the Under Secretary 
for Health for research carried out with Department funds. Such 
procedures shall include a scientific review process.
  (d) Education Activities.--Except for reasonable and usual 
preliminary costs for activity planning before its approval, a 
corporation established under this subchapter may not spend 
funds for an education activity unless the activity is approved 
in accordance with procedures prescribed by the Under Secretary 
for Health.
  (e) Policies and Procedures.--The Under Secretary for Health 
may prescribe policies and procedures to guide the spending of 
funds by corporations established under this subchapter that 
are consistent with the purpose of such corporations as 
flexible funding mechanisms and with Federal and State laws and 
regulations, and executive orders, circulars, and directives 
that apply generally to the receipt and expenditure of funds by 
nonprofit organizations exempt from taxation under section 
501(c)(3) of the Internal Revenue Code of 1986.

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