[House Report 117-222]
[From the U.S. Government Publishing Office]
117th Congress} { Report
2d Session } HOUSE OF REPRESENTATIVES { 117-222
======================================================================
GUARD AND RESERVE GI BILL PARITY ACT OF 2021
_______
January 6, 2022.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Takano, from the Committee on Veterans' Affairs, submitted the
following
R E P O R T
together with
DISSENTING VIEWS
[To accompany H.R. 1836]
[Including cost estimate of the Congressional Budget Office]
The Committee on Veterans' Affairs, to whom was referred
the bill (H.R. 1836) to amend title 38, United States Code, to
ensure that the time during which members of the Armed Forces
serve on active duty for training qualifies for educational
assistance under the Post-9/11 Educational Assistance Program
of the Department of Veterans Affairs, and for other purposes,
having considered the same, reports favorably thereon with an
amendment and recommends that the bill as amended do pass.
CONTENTS
Page
Purpose and Summary.............................................. 3
Background and Need for Legislation.............................. 3
Hearings......................................................... 4
Subcommittee Consideration....................................... 6
Committee Consideration.......................................... 6
Committee Votes.................................................. 6
Committee Oversight Findings..................................... 8
Statement of General Performance Goals and Objectives............ 8
New Budget Authority, Entitlement Authority, and Tax Expenditures 8
Earmarks and Tax and Tariff Benefits............................. 8
Committee Cost Estimate.......................................... 8
Congressional Budget Office Estimate............................. 8
Federal Mandates Statement....................................... 12
Advisory Committee Statement..................................... 12
Constitutional Authority Statement............................... 12
Applicability to Legislative Branch.............................. 12
Statement on Duplication of Federal Programs..................... 12
Disclosure of Directed Rulemaking................................ 13
Section-by-Section Analysis of the Legislation................... 13
Changes in Existing Law Made by the Bill as Reported............. 13
Minority Views................................................... 24
Dissenting Views................................................. 25
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Guard and Reserve GI Bill Parity Act
of 2021''.
SEC. 2. POST-9/11 EDUCATIONAL ASSISTANCE FOR CERTAIN RESERVE AND
NATIONAL GUARD DUTY.
(a) Other Qualifying Duty.--Section 3311(b) of title 38, United
States Code, is amended--
(1) by striking ``(including'' each place it appears and
inserting ``(including other qualifying duty and'';
(2) by striking ``(excluding'' each place it appears and
inserting ``(including other qualifying duty but excluding'';
and
(3) in paragraph (2), by inserting ``or other qualifying
duty'' after ``active duty'' both places it appears.
(b) Other Qualifying Duty Defined.--Section 3301 of such title is
amended--
(1) by redesignating paragraphs (3) and (4) as paragraphs (4)
and (5), respectively; and
(2) by inserting after paragraph (2) the following new
paragraph:
``(3) The term `other qualifying duty' means the following:
``(A) During the period beginning on August 1, 2025,
and ending on July 31, 2032, active duty for training
performed by a member of the Armed Forces--
``(i) on or after August 1, 2025; or
``(ii) before August 1, 2025, if such
individual is a member of the Armed Forces on
or after such date.
``(B) On or after August 1, 2032, duty performed
before, on, or after such date that is--
``(i) active duty for training performed by a
member of the Armed Forces; or
``(ii) inactive duty training performed by a
member of the Armed Forces.''.
(c) Time Limitation for Use of Entitlement for Other Qualifying
Duty.--Section 3321 of such title is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``; or'' and
inserting a semicolon;
(B) in paragraph (2), by striking the period at the
end and inserting ``; or''; and
(C) by adding at the end the following new paragraph:
``(3) in the case of an individual whose entitlement is based
on other qualifying duty performed--
``(A) before August 1, 2025, expires on the latter
of--
``(i) the end of the 15-year period beginning
on the date of the discharge or release of such
individual from the Armed Forces; or
``(ii) August 1, 2040; or
``(B) on or after August 1, 2025, shall not
expire.''; and
(2) in subsection (b), by adding at the end the following new
paragraph:
``(6) Individuals subject to two periods.--In the case of an
individual subject to periods under paragraphs (1) and (3)(A)
of subsection (a), the period under such paragraph (3)(A) shall
apply to such individual's entitlement.''.
SEC. 3. MODIFICATION OF CERTAIN HOUSING LOAN FEES.
(a) Extension.--The loan fee table in section 3729(b)(2) of title 38,
United States Code, is amended by striking ``October 1, 2030'' each
place it appears and inserting ``October 1, 2031''.
(b) IRRRL Rate.--The item in subparagraph (E) of the loan fee table
under such section is amended to read as follows:
------------------------------------------------------------------------
``(E)(i) Interest rate reduction 0.85 0.85 NA
refinancing loan (closed on or
after July 1, 2022, and before
October 1, 2028)................
(ii) Interest rate reduction 0.50 0.50 NA''.
refinancing loan (closed during
a period not covered by clause
(i))............................
------------------------------------------------------------------------
Purpose and Summary
H.R. 1836 the ``Guard and Reserve GI Bill Parity Act of
2021'' was introduced by Representative Mike Levin, the
Chairman of the Subcommittee on Economic Opportunity, on March
11, 2021. H.R. 1836, as amended, would become effective in 2025
and would provide parity for accrual of active duty service
credit for GI Bill eligibility for Guard and Reservists. The
bill does this by amending the language in 38 U.S.C.
Sec. 3311(b) to include ``other qualifying duty'', with the
exception of Inactive Duty Training (IDT), as duty that counts
towards GI Bill eligibility beginning August 1, 2025. For those
Guard and Reservists currently serving on date of
implementation in 2025, their service in non-IDT duty statuses
before the date of implementation creates eligibility as well.
After August 1, 2032, all federal duty statuses, including IDT,
create eligibility for GI Bill for service performed before,
on, or after that date.
H.R. 1836, as amended, makes adjustments to certain VA
housing loan fees and is in compliance with the Pay-As-You-Go
Act of 2010.
Background and Need for Legislation
In the Post 9/11 era, the Reserve Component (defined as the
Army and Air National Guards, and the Army, Navy, Marine, Air
Force, and Coast Guard Reserves) have become an integral part
of the United States' national defense plans as an Operational
Reserve, a change from their traditional role as a Strategic
Reserve. However, personnel and benefits policy has not kept
pace with changes in operational roles. This is putting unfair
strain on service members, employers, and families.
There are increasing instances of service members from the
Active and Reserve Components serving next to each other, doing
the same job, running the same risks, but receiving different
pay and benefits. With the Reserve Component engaged in more
training and operations, which carry inherent risk due to its
role as an Operational Reserve, we are seeing an increase in
major accidents and fatalities among Reserve Component service
members.
When the Reserve Component was a Strategic Reserve, there
was a lower level of readiness required because there would be
several months to train up upon Full Mobilization. Generally,
Reserve Component service members could expect to train ``two
days a month and two weeks in the summer.'' Though not quite
accurate, that translated to service members doing about 39
training days per year.
With the shift to an Operational Reserve, and the
requirement to maintain much higher levels of readiness and
much more frequent training events or deployments, Reserve
Component service members are often training much more than the
``two days a month and two weeks in the summer.'' Under the
``Guard 4.0'' training model, which is the new operations tempo
the National Guard Bureau (NGB) put in place for its Armored
Brigade Combat Teams, units can expect to do the following
collective training days per year: Year 1: 39; Year 2: 45; Year
3: 60; and Year 4: 51.
Active Component service members earn eligibility for the
Post 9/11-GI Bill every day they serve. For Reserve Component
service members, it depends on what duty status they are under.
Up until recently, Reserve Component service members deployed
to the Sinai and Kosovo were not earning Post-9/11 GI Bill
eligibility for their time deployed (under the 12304b duty
status.) While the Committee fixed that specific duty status
issue in the ``Forever GI Bill'' (costing nearly a billion
dollars), that has not been fixed for all duty statuses. This
includes drill weekends, where service members are conducting
training similar to their active duty counterparts, including
the same risks (if not increased risks because they spend less
time operating the equipment) but not being compensated in the
same manner.
This bill ensures Guard and Reservists receive credit for
every day they spend in uniform for GI Bill purposes. H.R.
1836, as amended, has the support of numerous Veteran Service
Organizations, including Student Veterans of America, National
Guard Association of the United States, Enlisted Association of
the National Guard of the United States, and Reserve Officers
of America.
Hearings
Pursuant to clause 3(c)(6) of rule XIII of the Rules of the
House of Representatives, the Committee held the following
hearings which were used to develop H.R. 1836:
On Thursday, May 9, 2019, at 10:00 a.m., the Committee on
Veterans' Affairs Subcommittees on Economic Opportunity and
Technology Modernization held an oversight hearing entitled
``Examining Ongoing Forever GI Bill Implementation Efforts.''
There was one witness panel where the following witnesses
testified: Dr. Paul R. Lawrence, Under Secretary Veterans
Benefits Administration, U.S. Department of Veterans Affairs,
Ms. Charmain Bogue, Acting Executive Director, Education
Service, Veterans Benefits Administration, Mr. James P.
Gfrerer, Assistant Secretary, Office of Information and
Technology, U.S. Department of Veterans Affairs, Mr. Robert
Orifini, Information Technology Specialist, Architecture,
Strategy, and Design, Office of Information and Technology, The
Honorable Michael J. Missal, Inspector General, Office of
Inspector General, Department of Veterans Affairs, Dr. Jay
Schnitzer, Vice President, Chief Technology Officer, The MITRE
Corporation.
On Wednesday, October 23, 2019, at 10:00 a.m., the
Committee on Veterans' Affairs Subcommittees on Economic
Opportunity held an oversight hearing entitled ``Protecting
Benefits for All Servicemembers''. There was one witness panel
at this hearing where the following witnesses testified: Major
General Dawne Deskins Director, Manpower and Personnel,
National Guard Bureau, Major General Michael C. O'Guinn Deputy
Chief, Army Reserve, Daniel Elkins, Legislative Director,
Enlisted Association of the National Guard of the United
States, J. Roy Robinson, President, National Guard Association
of the United States, Susan Lukas, Director, Legislation and
Military Policy, Reserve Officer Association of the United
States.
On Tuesday, November 19, 2019, at 10:00 a.m., the Committee
on Veterans' Affairs Subcommittee on Economic Opportunity held
an oversight hearing entitled ``Examining Ongoing Forever GI
Bill Implementation Efforts.'' There was one witness panel for
this hearing where the following witnesses testified: Dr. Paul
R. Lawrence, Under Secretary, Veterans Benefits Administration,
U.S. Department of Veterans Affairs, Ms. Charmain Bogue,
Executive Director, Education Service, Veterans Benefits
Administration, Mr. James P. Gfrerer, Assistant Secretary,
Office of Information and Technology, U.S. Department of
Veterans Affairs, Mr. Robert Orifini, Information Technology
Specialist, Architecture, Strategy, and Design, Office of
Information and Technology, Dr. Jay Schnitzer, Vice President,
Chief Technology Officer, The MITRE Corporation.
On Tuesday, December 8, 2020, at 10:00 a.m., the Committee
on Veterans' Affairs Subcommittee on Economic Opportunity held
an oversight hearing entitled ``Identifying Congressional and
Administration Priorities for the Next Congress: How we can
support our Veterans through and after COVID-19.'' There was
one witness panel where the following witnesses testified: Mr.
Pat Murray, Director, National Legislative Service Veterans of
Foreign Wars, Mr. John Kamin, Assistant Director, Veterans
Employment & Education Division, The American Legion, Ms.
Maureen Elias, Associate Legislative Director, Paralyzed
Veterans of America, Ms. Ashlynne Haycock, Deputy Director,
Policy, Tragedy Assistance Program For Survivors, Mr. Victor
LaGroon, Director, Black Veteran Empowerment Council, Ms.
Lauren Augustine, Vice President of Government Affairs Student
Veterans of America, Ms. Tanya Ang, Vice President Veterans
Education Success.
On Wednesday May 12, 2021, at 10:00 a.m., the Subcommittee
on Economic Opportunity held an oversight hearing entitled
``Military Transition During the COVID-19 Pandemic''. The
hearing consisted of two panels. On the first panel the
following witnesses testified: Vivian Richards, Program
Manager, Minority Veterans of America, Dr. J. Michael Haynie,
PhD., Vice Chancellor for Strategic Initiatives and
Innovations, Institute for Veteran and Military Families,
Syracuse University, Jennifer Dane, Executive Director, Modern
Military Association of America, Matt Stevens, Chief Executive
Officer, The Honor Foundation, Carolyn Lee, Executive Director,
The Manufacturing Institute, Patrick Murray, Legislative
Director, Veterans of Foreign Wars. On the second panel the
following witnesses testified: William Mansell, Director,
Defense Support Services, Department of Defense, James
Rodriguez, Acting Assistant Secretary, Veterans' Employment &
Training Service, Department of Labor, Cheryl Rawls, Executive
Director, Outreach, Transition and Economic Development Service
(OTED) Veterans Benefits Administration, Dr. Lawrencia Pierce,
Deputy Director Outreach, Transition and Economic Development
Service (OTED), Veterans Benefits Administration, Joshua
Lashbrook, Assistant Director of Operations Support and Digital
GI Bill Program Lead, Education Service, Veterans Benefits
Administration.
On July 20, 2021, at 10:00 a.m., the House Committee on
Veterans' Affairs Subcommittee on Economic Opportunity held an
oversight hearing entitled ``Isakson Roe at Six Months: An
Update on Implementation of Education Improvements.'' There was
one witness panel where the following witness testified:
Charmain Bogue, Executive Director, Education Service, Veterans
Benefits Administration.
Subcommittee Consideration
H.R. 1836 was considered by the Subcommittee on Economic
Opportunity at a legislative hearing on March 10, 2020.
The following witnesses testified: Ms. Margarita Devlin,
Principal Deputy Undersecretary for Benefits Veterans Benefits
Administration, Accompanied by: Ms. Charmain Bogue, Executive
Director, Education Services, Veterans Benefits Administration
and Dr. Keith Harris, Director of Clinical Operations, VHA
Homelessness Program Office, Veterans Health Administration;
Mr. Frank Yoakum, Executive Director, Enlisted Association of
the National Guard; Mr. Richard Gentry, President & CEO, San
Diego Housing Commission; Mr. Justin Hauschild, Legal Fellow,
Student Veterans of America; Mr. Patrick Murray, Deputy
Director, Veterans of Foreign Wars.
Committee Consideration
On November 4, 2021, the full Committee met in an open
markup session, a quorum being present, and ordered H.R. 1836,
as amended, reported favorably to the House of Representatives
by a voice vote.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the recorded
votes on the motion to report the legislation and amendments
thereto.
There was an amendment offered by Congressman Mike Levin of
California to H.R. 1836, which was agreed to by a roll call
vote of 17-12.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
There was an amendment offered by Congressman Barry Moore
of Alabama to H.R. 1836, which was not agreed to by a voice
vote.
There was a motion by Congressman Mike Levin of California
to favorably report H.R. 1836, as amended, to the U.S. House of
Representatives, which was agreed to by a 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.
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 establishes the
following performance goals and objectives for this
legislation: equity of readjustment educational benefits for
all members of the armed forces, including National Guard and
Reserve Components.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee adopts as its
own the estimate of new budget authority, entitlement
authority, or tax expenditures or revenues contained in the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
Earmarks and Tax and Tariff Benefits
H.R. 1836, as amended, does not contain any Congressional
earmarks, limited tax benefits, or limited tariff benefits as
defined in clause 9 of rule XXI of the Rules of the House of
Representatives.
Committee Cost Estimate
The Committee adopts as its own the cost estimate on H.R.
1836, as amended, prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
Congressional Budget Office Cost Estimate
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
for H.R. 1836 provided by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974:
According to the Congressional Budget Office
estimate, H.R. 1836, as amended, would provide members
of the National Guard and Reserve Components Post 9/11
Education Assistance for certain duties carried out
during their service time. The Congressional Budget
office estimates over the ten-year budget period of
Fiscal Year 2022 to Fiscal Year 2031, H.R. 1836, as
reported, would result in a savings of $20 million.
This is accounted for from $1.94 billion in new
mandatory spending in additional educational benefits,
and $1.96 billion in new home loan fees.
U.S. Congress,
Congressional Budget Office,
Washington, DC, December 6, 2021.
Hon. Mark Takano,
Chairman, Committee on Veterans' Affairs,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 1836, the Guard
and Reserve GI Bill Parity Act of 2021.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Paul B.A.
Holland.
Sincerely,
Phillip L. Swagel,
Director.
Enclosure.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
The bill would
Increase the fees that borrowers pay to the
Department of Veterans Affairs (VA) for home loan
guarantees
Credit certain time spent training while
serving in the reserve components toward entitlement
for Post-9/11 GI Bill benefits
Estimated budgetary effects would mainly stem from
Higher fees charged by VA for home loan
guarantees
Increased use of Post-9/11 GI Bill benefits
Areas of significant uncertainty include
Predicting the number of reservists and
guard members who would become eligible for benefits
under the Post-9/11 GI Bill solely as a result of time
spent on active duty for training
Bill summary: H.R. 1836 would raise the fees that the
Department of Veterans Affairs (VA) collects from borrowers to
partially offset the cost of home loan guarantees. The bill
also would credit time spent on active duty for training in the
reserve components toward entitlement for education benefits
under the Post-9/11 GI Bill.
Estimated Federal cost: The estimated budgetary effects of
H.R. 1836 are shown in Table 1. The bill would decrease direct
spending by $20 million over the 2022-2031 period. The costs of
the legislation fall within budget function 700 (veterans
benefits and services).
TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 1836
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, millions of dollars--
-----------------------------------------------------------------------------------------------------------
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2022-2026 2022-2031
--------------------------------------------------------------------------------------------------------------------------------------------------------
Increases or Decreases (-) in Direct Spending
Home Loan Fees.............................. -108 -205 -180 -173 -152 -152 -140 0 0 -850 -818 -1,960
Post-9/11 GI Bill........................... 0 0 0 14 163 263 301 328 356 515 177 1,940
Total Changes in Direct Spending.......... -108 -205 -180 -159 11 111 161 328 356 -335 -641 -20
--------------------------------------------------------------------------------------------------------------------------------------------------------
Budget authority is equal to the outlays shown here for all provisions.
Basis of estimate: For this estimate, CBO assumes that H.R.
1836 will be enacted in 2022 and that the bill's provisions
will take effect on the specified dates. Estimated outlays are
based on historical spending patterns for the affected
programs.
Direct spending: H.R. 1836 would make changes to VA's home
loan program and the Post-9/11 GI Bill program. On net,
enacting the bill would decrease direct spending by $20 million
over the 2022-2031 period, CBO estimates.
Home Loan Fees. VA provides loan guarantees to lenders to
help eligible borrowers obtain better loan terms--such as lower
interest rates or smaller down payments--for purchasing,
constructing, or refinancing a home. VA typically pays lenders
up to 25 percent of the outstanding mortgage balance if a
borrower's home is foreclosed upon. Those payments, net of fees
paid by borrowers and recoveries by lenders, constitute the
subsidy cost of VA loan guarantees, which is paid from
mandatory appropriations; hence, changing the subsidy cost
affects direct spending guarantees, which is paid from
mandatory appropriations; hence, changing the subsidy cost
affects direct spending guarantees, which is paid from
mandatory appropriations; hence, changing the subsidy cost
affects direct spending.\1\
---------------------------------------------------------------------------
\1\Under the Federal Credit Reform Act of 1990, the subsidy cost of
a loan guarantee is the net present value of estimated payments by the
government to cover defaults and delinquencies, interest subsidies, or
other expenses offset by any payments to the government, including
origination or other fees, penalties, and recoveries on defaulted
loans. Such subsidy costs are calculated by discounting those expected
cash flows using the rate on Treasury securities of comparable
maturity. The resulting estimated subsidy costs are recorded in the
budget when the loans are disbursed or modified.
---------------------------------------------------------------------------
Under current law, most of the fees borrowers pay to VA for
loan guarantees after 2030 will decline from a weighted average
of 2.5 percent of the loan amount to 1.2 percent. H.R. 1836
would extend the higher rates through 2031. The bill also would
raise fees for guarantees of certain refinancing loans from 0.5
percent to 0.85 percent over the period from July 1, 2022, to
September 30, 2028. Using information from VA about the volume
of guaranteed loans in recent years, the default rate for those
loans, and the amount of fees collected for the guarantees, CBO
estimates that extending the higher fee rates would decrease
direct spending by almost $2 billion over the 2022-2031 period.
Post-9/11 GI Bill. Under the Post-9/11 GI Bill, VA pays
tuition, housing, and other expenses for up to 36 months for
beneficiaries who pursue approved education or training
programs. People who serve at least 30 days on active duty in
the armed forces are eligible for benefits. Those who serve at
least six years in any of the uniformed services and agree to
serve another four years may be approved to transfer benefits
to their spouse or children. The amount of those benefits
depends on the period of time that service members are on
active duty.
Full benefits are paid to or on behalf of those who served
on active duty for at least 36 months or for 30 continuous days
if they were discharged because of a service-connected
disability. The benefits consist of an amount equivalent to in-
state tuition and fees at a public postsecondary institution or
up to $26,043 (for the 2021-2022 academic year) annually for a
private or a foreign institution, a monthly housing allowance
(national average of $1,896) for students enrolled more than
half-time, and a stipend for books and supplies (up to $1,000
each year). Entitlement to benefits for veterans who spent less
than 36 months on active duty are reduced on the basis of the
period of time served.
For reservists and guard members who serve on or after
August 1, 2025, H.R. 1836 would count time in active duty for
training toward for Post-9/11 GI Bill benefits. For the reserve
components, active duty for training consists of nearly all
full-time duty other than during mobilizations, including the
two weeks of annual training required of every reservist and
guard member. That training is not counted towards entitlement
for the Post-9/11 GI Bill under current law.
By counting the time spent in active duty for training,
H.R.1837 would increase benefit amounts for some people who
already will be using benefits under current law, CBO
anticipates, and it would increase the number of people who
would use benefits because the amounts would be larger than
they are under current law. The provision also would make some
people eligible for benefits solely because of participation in
two weeks of annual training. According to the Department of
Defense, the average member of the reserve components serves
for eight years; those reservists or guard members would accrue
an additional four months of service toward entitlement for
Post-9/11 GI Bill benefits.
Using information from VA, CBO estimates that the
additional time counted would increase annual benefits, on
average, by about $2,500 each for the roughly 15,000
beneficiaries who are eligible under current law for reduced
benefits. In addition, roughly 2,500 people who would not use
benefits under current law would use the larger benefit amounts
under the bill, at an average annual cost of about $13,500 per
beneficiary. Lastly, roughly 23,000 people who became eligible
solely because of their time in active duty for training would
use the benefits, at an annual cost of about $9,000 each, on
average.
CBO estimates that in total, those larger benefit amounts
and additional beneficiaries would increase direct spending by
$1.9 billion over the 2022-2031 period.
Uncertainty: A significant source of uncertainty for CBO's
estimate involves the number of reservists and guard members
who would become newly eligible for benefits under the Post-9/
11 GI Bill solely as a result of serving on active duty for
training. If that number is higher or lower than projected, the
cost of the bill could differ significantly from the estimated
amounts.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays that are subject to those
pay-as-you-go procedures are shown in Table 1.
Increase in long-term deficits: CBO estimates that enacting
H.R. 1836 would increase on-budget deficits by more than $5
billion in each of the four consecutive 10-year periods
beginning in 2032 because a provision taking effect on August 1
of that year would count both active and inactive duty for
training before, on, or after that date for benefits under the
Post-9/11 GI Bill. The increases in home loan fees under the
bill would expire before 2032 and thus would have no long-term
effects on deficits.
Mandates: None.
Estimate prepared by: Federal costs: Paul B.A. Holland;
Mandates: Brandon Lever.
Estimate reviewed by: David Newman, Chief, Defense,
International Affairs, and Veterans' Affairs Cost Estimates
Unit; Leo Lex, Deputy Director of Budget Analysis; Theresa
Gullo, Director of Budget Analysis.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates regarding H.R. 1836 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.
1836.
Constitutional Authority Statement
Pursuant to Article I, section 8 of the United States
Constitution, H.R. 1836 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. 1836 does not relate to the
terms and conditions of employment or access to public services
or accommodations within the legislative branch.
Statement on Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee finds that no provision
of H.R. 1836 establishes or reauthorizes a program of the
Federal Government known to be duplicative of another Federal
program, a program that was included in any report from the
Government Accountability Office to Congress pursuant to
section 21 of Public Law 111-139, or a program related to a
program identified in the most recent Catalog of Federal
Domestic Assistance.
Disclosure of Directed Rulemaking
Pursuant to clause 3(c)(5) of Rule XIII, the Committee
estimates that H.R. 1836 contains no directed rule making that
would require the Secretary to prescribe regulations.
Section-by-Section Analysis of the Legislation
Section 1: Short title: This Act may be cited as the
``Guard and Reserve GI Bill Parity Act of 2021''.
Section 2: Amends the language in 38 U.S.C. Sec. 3311(b)
to include ``other qualifying duty'', with the exception of
Inactive Duty Training (IDT), as duty that counts towards GI
Bill eligibility beginning August 1, 2025. For those Guard and
Reservists currently serving on date of implementation in 2025,
their service in non-IDT duty statuses before the date of
implementation creates eligibility as well. After August 1,
2032, all federal duty statuses, including IDT, create
eligibility for GI Bill for service performed before, on, or
after that date.
Section 3: Makes adjustments to VA Home Loan fees by
extending certain fees from October 1, 2030 to October 1, 2031.
Makes adjustments to the Interest Rate Reduction Refinancing
Loan rates.
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 italics, and existing law in which no
change is proposed is shown in roman):
TITLE 38, UNITED STATES CODE
* * * * * * *
PART III--READJUSTMENT AND RELATED BENEFITS
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CHAPTER 33--POST-9/11 EDUCATIONAL ASSISTANCE
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SUBCHAPTER I--DEFINITIONS
Sec. 3301. Definitions
In this chapter:
(1) The term ``active duty'' has the meanings as
follows (subject to the limitations specified in
sections 3002(6) and 3311(b)):
(A) In the case of members of the regular
components of the Armed Forces, the meaning
given such term in section 101(21)(A).
(B) In the case of members of the reserve
components of the Armed Forces, service on
active duty under a call or order to active
duty under section 688, 12301(a), 12301(d),
12301(g), 12301(h), 12302, 12304, 12304a, or
12304b of title 10 or section 712 of title 14.
(C) In the case of a member of the Army
National Guard of the United States or Air
National Guard of the United States, in
addition to service described in subparagraph
(B), full-time service--
(i) in the National Guard of a State
for the purpose of organizing,
administering, recruiting, instructing,
or training the National Guard; or
(ii) in the National Guard under
section 502(f) of title 32 when
authorized by the President or the
Secretary of Defense for the purpose of
responding to a national emergency
declared by the President and supported
by Federal funds.
(2) The term ``entry level and skill training''
means the following:
(A) In the case of members of the Army,
Basic Combat Training and Advanced Individual
Training or One Station Unit Training.
(B) In the case of members of the Navy,
Recruit Training (or Boot Camp) and Skill
Training (or so-called ``A'' School).
(C) In the case of members of the Air Force
or the Space Force, Basic Military Training and
Technical Training.
(D) In the case of members of the Marine
Corps, Recruit Training and Marine Corps
Training (or School of Infantry Training).
(E) In the case of members of the Coast
Guard, Basic Training and Skill Training (or
so-called ``A'' School).
(3) The term ``other qualifying duty'' means the
following:
(A) During the period beginning on August 1,
2025, and ending on July 31, 2032, active duty
for training performed by a member of the Armed
Forces--
(i) on or after August 1, 2025; or
(ii) before August 1, 2025, if such
individual is a member of the Armed
Forces on or after such date.
(B) On or after August 1, 2032, duty
performed before, on, or after such date that
is--
(i) active duty for training
performed by a member of the Armed
Forces; or
(ii) inactive duty training
performed by a member of the Armed
Forces.
[(3)] (4) The term ``program of education'' has the
meaning given such term in section 3002, except to the
extent otherwise provided in section 3313.
[(4)] (5) The term ``Secretary of Defense'' means
the Secretary of Defense, except that the term means
the Secretary of Homeland Security with respect to the
Coast Guard when it is not operating as a service in
the Navy.
* * * * * * *
SUBCHAPTER II--EDUCATIONAL ASSISTANCE
Sec. 3311. Educational assistance for service in the Armed Forces
commencing on or after September 11, 2001:
entitlement
(a) Entitlement.--Subject to subsections (d) and (e), each
individual described in subsection (b) is entitled to
educational assistance under this chapter.
(b) Covered Individuals.--An individual described in this
subsection is any individual as follows:
(1) An individual who--
(A) commencing on or after September 11,
2001, serves an aggregate of at least 36 months
on active duty in the Armed Forces [(including]
(including other qualifying duty and service on
active duty in entry level and skill training);
and
(B) after completion of service described in
subparagraph (A)--
(i) continues on active duty; or
(ii) is discharged or released from
active duty as described in subsection
(c).
(2) An individual who--
(A) commencing on or after September 11,
2001, serves at least 30 continuous days on
active duty or other qualifying duty in the
Armed Forces; and
(B) after completion of service described in
subparagraph (A), is discharged or released
from active duty or other qualifying duty in
the Armed Forces for a service-connected
disability.
(3) An individual who--
(A) commencing on or after September 11,
2001, serves an aggregate of at least 30
months, but less than 36 months, on active duty
in the Armed Forces [(including] (including
other qualifying duty and service on active
duty in entry level and skill training); and
(B) after completion of service described in
subparagraph (A)--
(i) continues on active duty for an
aggregate of less than 36 months; or
(ii) before completion of service on
active duty of an aggregate of 36
months, is discharged or released from
active duty as described in subsection
(c).
(4) An individual who--
(A) commencing on or after September 11,
2001, serves an aggregate of at least 24
months, but less than 30 months, on active duty
in the Armed Forces [(including] (including
other qualifying duty and service on active
duty in entry level and skill training); and
(B) after completion of service described in
subparagraph (A)--
(i) continues on active duty for an
aggregate of less than 30 months; or
(ii) before completion of service on
active duty of an aggregate of 30
months, is discharged or released from
active duty as described in subsection
(c).
(5) An individual who--
(A) commencing on or after September 11,
2001, serves an aggregate of at least 18
months, but less than 24 months, on active duty
in the Armed Forces [(excluding] (including
other qualifying duty but excluding service on
active duty in entry level and skill training);
and
(B) after completion of service described in
subparagraph (A)--
(i) continues on active duty for an
aggregate of less than 24 months; or
(ii) before completion of service on
active duty of an aggregate of 24
months, is discharged or released from
active duty as described in subsection
(c).
(6) An individual who--
(A) commencing on or after September 11,
2001, serves an aggregate of at least 6 months,
but less than 18 months, on active duty in the
Armed Forces [(excluding] (including other
qualifying duty but excluding service on active
duty in entry level and skill training); and
(B) after completion of service described in
subparagraph (A)--
(i) continues on active duty for an
aggregate of less than 18 months; or
(ii) before completion of service on
active duty of an aggregate of 18
months, is discharged or released from
active duty as described in subsection
(c).
(7) An individual who--
(A) commencing on or after September 11,
2001, serves an aggregate of at least 90 days,
but less than 6 months, on active duty in the
Armed Forces [(excluding] (including other
qualifying duty but excluding service on active
duty in entry level and skill training); and
(B) after completion of service described in
subparagraph (A)--
(i) continues on active duty for an
aggregate of less than 6 months; or
(ii) before completion of service on
active duty of an aggregate of 6
months, is discharged or released from
active duty as described in subsection
(c).
(8) An individual who is the child or spouse of a
person who, on or after September 11, 2001, dies in
line of duty while serving on active duty as a member
of the Armed Forces.
(9) An individual who is the child or spouse of a
person who, on or after September 11, 2001, dies in
line of duty while serving on duty other than active
duty as a member of the Armed Forces.
(10) An individual who is the child or spouse of a
member of the Selected Reserve who dies on or after
September 11, 2001, while a member of the Selected
Reserve from a service-connected disability.
(11) An individual who is awarded the Purple Heart
for service in the Armed Forces occurring on or after
September 11, 2001, and continues to serve on active
duty in the Armed Forces or is discharged or released
from active duty as described in subsection (c).
(c) Covered Discharges and Releases.--A discharge or release
from active duty of an individual described in this subsection
is a discharge or release as follows:
(1) A discharge from active duty in the Armed Forces
with an honorable discharge.
(2) A release after service on active duty in the
Armed Forces characterized by the Secretary concerned
as honorable service and placement on the retired list,
transfer to the Fleet Reserve or Fleet Marine Corps
Reserve, or placement on the temporary disability
retired list.
(3) A release from active duty in the Armed Forces
for further service in a reserve component of the Armed
Forces after service on active duty characterized by
the Secretary concerned as honorable service.
(4) A discharge or release from active duty in the
Armed Forces after service on active duty in the Armed
Forces characterized by the Secretary concerned as
honorable service for--
(A) a medical condition which preexisted the
service of the individual as described in the
applicable paragraph of subsection (b) and
which the Secretary determines is not service-
connected;
(B) hardship; or
(C) a physical or mental condition that was
not characterized as a disability and did not
result from the individual's own willful
misconduct but did interfere with the
individual's performance of duty, as determined
by the Secretary concerned in accordance with
regulations prescribed by the Secretary of
Defense.
(d) Prohibition on Treatment of Certain Service as Period of
Active Duty.--The following periods of service shall not be
considered a part of the period of active duty on which an
individual's entitlement to educational assistance under this
chapter is based:
(1) A period of service on active duty of an officer
pursuant to an agreement under section 2107(b) of title
10.
(2) A period of service on active duty of an officer
pursuant to an agreement under section 7448, 8459, or
9448 of title 10 or section 182 of title 14.
(3) A period of service that is terminated because
of a defective enlistment and induction based on--
(A) the individual's being a minor for
purposes of service in the Armed Forces;
(B) an erroneous enlistment or induction; or
(C) a defective enlistment agreement.
(e) Treatment of Individuals Entitled Under Multiple
Provisions.--In the event an individual entitled to educational
assistance under this chapter is entitled by reason of both
paragraphs (4) and (5) of subsection (b), the individual shall
be treated as being entitled to educational assistance under
this chapter by reason of paragraph (5) of subsection (b).
(f) Marine Gunnery Sergeant John David Fry Scholarship.--
(1) In general.--Educational assistance payable by
reason of paragraphs (8), (9), and (10) of subsection
(b) shall be known as the ``Marine Gunnery Sergeant
John David Fry scholarship''.
(2) Limitation.--The entitlement of an individual to
assistance under subsection (a) pursuant to paragraphs
(8), (9), and (10) of subsection (b) because the
individual was a spouse of a person described in such
paragraph shall expire on the earlier of--
(A) the date that is 15 years after the date
on which the person died; or
(B) the date on which the individual
remarries.
(3) Election on receipt of certain benefits.--Except
as provided in paragraph (4), a surviving spouse
entitled to assistance under subsection (a) pursuant to
paragraphs (8), (9), and (10) of subsection (b) who is
also entitled to educational assistance under chapter
35 of this title may not receive assistance under both
this section and such chapter, but shall make an
irrevocable election (in such form and manner as the
Secretary may prescribe) under which section or chapter
to receive educational assistance.
(4) Exception for certain elections.--
(A) In general.--An election made under
paragraph (3) by a spouse described in
subparagraph (B) may not be treated as
irrevocable if such election occurred before
the date of the enactment of this paragraph.
(B) Eligible surviving spouse.--A spouse
described in this subparagraph is an
individual--
(i) who is entitled to assistance
under subsection (a) pursuant to
paragraphs (8), (9), and (10) of
subsection (b); and
(ii) who was the spouse of a member
of the Armed Forces who died during the
period beginning on September 11, 2001,
and ending on December 31, 2005.
(5) Definition of child.--For purposes of paragraphs
(8), (9), and (10) of subsection (b), the term
``child'' includes a married individual or an
individual who is above the age of twenty-three years.
* * * * * * *
SUBCHAPTER III--ADMINISTRATIVE PROVISIONS
Sec. 3321. Time limitation for use of and eligibility for entitlement
(a) In General.--Except as provided in this section, the
period during which an individual entitled to educational
assistance under this chapter may use such individual's
entitlement--
(1) in the case of an individual whose last
discharge or release from active duty is before January
1, 2013, expires at the end of the 15-year period
beginning on the date of such discharge or release[;
or];
(2) in the case of an individual whose last
discharge or release from active duty is on or after
January 1, 2013, shall not expire[.]; or
(3) in the case of an individual whose entitlement
is based on other qualifying duty performed--
(A) before August 1, 2025, expires on the
latter of--
(i) the end of the 15-year period
beginning on the date of the discharge
or release of such individual from the
Armed Forces; or
(ii) August 1, 2040; or
(B) on or after August 1, 2025, shall not
expire.
(b) Exceptions.--
(1) Applicability of section 3031 to running of
period.--Subsections (b), (c), and (d) of section 3031
shall apply with respect to the running of the 15-year
period described in subsection (a) of this section in
the same manner as such subsections apply under section
3031 with respect to the running of the 10-year period
described in section 3031(a).
(2) Applicability of section 3031 to termination.--
Section 3031(f) shall apply with respect to the
termination of an individual's entitlement to
educational assistance under this chapter in the same
manner as such section applies to the termination of an
individual's entitlement to educational assistance
under chapter 30, except that, in the administration of
such section for purposes of this chapter, the
reference to section 3013 shall be deemed to be a
reference to section 3312 of this title.
(3) Determination of last discharge or release.--For
purposes of subsection (a), an individual's last
discharge or release from active duty shall not include
any discharge or release from a period of active duty
of less than 90 days of continuous service, unless the
individual is discharged or released as described in
section 3311(b)(2).
(4) Applicability to children of deceased members.--
The period during which a child entitled to educational
assistance by reason of section 3311(b)(8) of this
title may use such child's entitlement--
(A) in the case of a child who first becomes
entitled to such entitlement before January 1,
2013, expires at the end of the 15-year period
beginning on the date of such child's
eighteenth birthday; or
(B) in the case of a child who first becomes
entitled to such entitlement on or after
January 1, 2013, shall not expire.
(5) Applicability to spouses of deceased members.--
The period during which a spouse entitled to
educational assistance by reason of section 3311(b)(9)
may use such spouse's entitlement--
(A) in the case of a spouse who first
becomes entitled to such entitlement before
January 1, 2013, expires at the end of the 15-
year period beginning on the date on which the
spouse first becomes entitled to such
entitlement; or
(B) in the case of a spouse who first
becomes entitled to such entitlement on or
after January 1, 2013, shall not expire.
(6) Individuals subject to two periods.--In the case
of an individual subject to periods under paragraphs
(1) and (3)(A) of subsection (a), the period under such
paragraph (3)(A) shall apply to such individual's
entitlement.
* * * * * * *
CHAPTER 37--HOUSING AND SMALL BUSINESS LOANS
* * * * * * *
SUBCHAPTER III--ADMINISTRATIVE PROVISIONS
* * * * * * *
Sec. 3729. Loan fee
(a) Requirement of Fee.--(1) Except as provided in
subsection (c), a fee shall be collected from each person
obtaining a housing loan guaranteed, insured, or made under
this chapter, and each person assuming a loan to which section
3714 of this title applies. No such loan may be guaranteed,
insured, made, or assumed until the fee payable under this
section has been remitted to the Secretary.
(2) The fee may be included in the loan and paid from the
proceeds thereof.
(b) Determination of Fee.--(1) The amount of the fee shall
be determined from the loan fee table in paragraph (2). The fee
is expressed as a percentage of the total amount of the loan
guaranteed, insured, or made, or, in the case of a loan
assumption, the unpaid principal balance of the loan on the
date of the transfer of the property.
(2) The loan fee table referred to in paragraph (1) is as
follows:
----------------------------------------------------------------------------------------------------------------
Active duty
Type of loan veteran Reservist Other obligor
----------------------------------------------------------------------------------------------------------------
(A)(i) Initial loan described in section 3710(a) 2.15 2.40 NA
to purchase or construct a dwelling with 0-down,
or any other initial loan described in section
3710(a) other than with 5-down or 10-down
(closed on or after October 1, 2004, and before
January 1, 2020)
(A)(ii) Initial loan described in section 3710(a) 2.30 2.30 NA
to purchase or construct a dwelling with 0-down,
or any other initial loan described in section
3710(a) other than with 5-down or 10-down
(closed on or after January 1, 2020, and before
April 7, 2023)
(A)(iii) Initial loan described in section 2.15 2.15 NA
3710(a) to purchase or construct a dwelling with
0-down, or any other initial loan described in
section 3710(a) other than with 5-down or 10-
down (closed on or after April 7, 2023, and
before [October 1, 2030] October 1, 2031 )
(A)(iv) Initial loan described in section 3710(a) 1.40 1.40 NA
to purchase or construct a dwelling with 0-down,
or any other initial loan described in section
3710(a) other than with 5-down or 10-down
(closed on or after [October 1, 2030] October 1,
2031 )
(B)(i) Subsequent loan described in section 3.30 3.30 NA
3710(a) to purchase or construct a dwelling with
0-down, or any other subsequent loan described
in section 3710(a) (closed on or after October
1, 2004, and before January 1, 2020)
(B)(ii) Subsequent loan described in section 3.60 3.60 NA
3710(a) to purchase or construct a dwelling with
0-down, or any other subsequent loan described
in section 3710(a) (closed on or after January
1, 2020, and before April 7, 2023)
(B)(iii) Subsequent loan described in section 3.30 3.30 NA
3710(a) to purchase or construct a dwelling with
0-down, or any other subsequent loan described
in section 3710(a) (closed on or after April 7,
2023, and before [October 1, 2030] October 1,
2031 )
(B)(iv) Subsequent loan described in section 1.25 1.25 NA
3710(a) to purchase or construct a dwelling with
0-down, or any other subsequent loan described
in section 3710(a) (closed on or after [October
1, 2030] October 1, 2031 )
(C)(i) Loan described in section 3710(a) to 1.50 1.75 NA
purchase or construct a dwelling with 5-down
(closed before January 1, 2020)
(C)(ii) Loan described in section 3710(a) to 1.65 1.65 NA
purchase or construct a dwelling with 5-down
(closed on or after January 1, 2020, and before
April 7, 2023)
(C)(iii) Loan described in section 3710(a) to 1.50 1.50 NA
purchase or construct a dwelling with 5-down
(closed on or after April 7, 2023, and before
[October 1, 2030] October 1, 2031 )
(C)(iv) Loan described in section 3710(a) to 0.75 0.75 NA
purchase or construct a dwelling with 5-down
(closed on or after [October 1, 2030] October 1,
2031 )
(D)(i) Loan described in section 3710(a) to 1.25 1.50 NA
purchase or construct a dwelling with 10-down
(closed before January 1, 2020)
(D)(ii) Loan described in section 3710(a) to 1.40 1.40 NA
purchase or construct a dwelling with 10-down
(closed on or after January 1, 2020, and before
April 7, 2023)
(D)(iii) Loan described in section 3710(a) to 1.25 1.25 NA
purchase or construct a dwelling with 10-down
(closed on or after April 7, 2023, and before
[October 1, 2030] October 1, 2031 )
(D)(iv) Loan described in section 3710(a) to 0.50 0.50 NA
purchase or construct a dwelling with 10-down
(closed on or after [October 1, 2030] October 1,
2031 )
[(E) Interest rate reduction refinancing loan 0.50 0.50 NA]
(E)(i) Interest rate reduction refinancing loan 0.85 0.85 NA
(closed on or after July 1, 2022, and before
October 1, 2028)
(ii) Interest rate reduction refinancing loan 0.50 0.50 NA
(closed during a period not covered by clause
(i))
(F) Direct loan under section 3711 1.00 1.00 NA
(G) Manufactured home loan under section 3712 1.00 1.00 NA
(other than an interest rate reduction
refinancing loan)
(H) Loan to Native American veteran under section 1.25 1.25 NA
3762 (other than an interest rate reduction
refinancing loan)
(I) Loan assumption under section 3714 0.50 0.50 0.50
(J) Loan under section 3733(a) 2.25 2.25 2.25
----------------------------------------------------------------------------------------------------------------
(3) Any reference to a section in the ``Type of loan''
column in the loan fee table in paragraph (2) refers to a
section of this title.
(4) For the purposes of paragraph (2):
(A) The term ``active duty veteran'' means any
veteran eligible for the benefits of this chapter other
than a Reservist.
(B) The term ``Reservist'' means a veteran described
in section 3701(b)(5)(A) of this title who is eligible
under section 3702(a)(2)(E) of this title.
(C) The term ``other obligor'' means a person who is
not a veteran, as defined in section 101 of this title
or other provision of this chapter.
(D)(i) The term ``initial loan'' means a loan to a
veteran guaranteed under section 3710 or made under
section 3711 of this title if the veteran has never
obtained a loan guaranteed under section 3710 or made
under section 3711 of this title.
(ii) If a veteran has obtained a loan guaranteed
under section 3710 or made under section 3711 of this
title and the dwelling securing such loan was
substantially damaged or destroyed by a major disaster
declared by the President under section 401 of the
Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5170), the Secretary shall
treat as an initial loan, as defined in clause (i), the
next loan the Secretary guarantees or makes to such
veteran under section 3710 or 3711, respectively, if--
(I) such loan is guaranteed or made before
the date that is three years after the date on
which the dwelling was substantially damaged or
destroyed; and
(II) such loan is only for repairs or
construction of the dwelling, as determined by
the Secretary.
(E) The term ``subsequent loan'' means a loan to a
veteran, other than an interest rate reduction
refinancing loan, guaranteed under section 3710 or made
under section 3711 of this title that is not an initial
loan.
(F) The term ``interest rate reduction refinancing
loan'' means a loan described in section 3710(a)(8),
3710(a)(9)(B)(i), 3710(a)(11), 3712(a)(1)(F), or
3762(h) of this title.
(G) The term ``0-down'' means a downpayment, if any,
of less than 5 percent of the total purchase price or
construction cost of the dwelling.
(H) The term ``5-down'' means a downpayment of at
least 5 percent or more, but less than 10 percent, of
the total purchase price or construction cost of the
dwelling.
(I) The term ``10-down'' means a downpayment of 10
percent or more of the total purchase price or
construction cost of the dwelling.
(c) Waiver of Fee.--(1) A fee may not be collected under
this section from a veteran who is receiving compensation (or
who, but for the receipt of retirement pay or active service
pay, would be entitled to receive compensation), from a
surviving spouse of any veteran (including a person who died in
the active military, naval, air, or space service) who died
from a service-connected disability, or from a member of the
Armed Forces who is serving on active duty and who provides, on
or before the date of loan closing, evidence of having been
awarded the Purple Heart.
(2)(A) A veteran described in subparagraph (B) shall be
treated as receiving compensation for purposes of this
subsection as of the date of the rating described in such
subparagraph without regard to whether an effective date of the
award of compensation is established as of that date.
(B) A veteran described in this subparagraph is a veteran
who is rated eligible to receive compensation--
(i) as the result of a pre-discharge disability
examination and rating; or
(ii) based on a pre-discharge review of existing
medical evidence (including service medical and
treatment records) that results in the issuance of a
memorandum rating.
* * * * * * *
Minority Views
Clause 2(c) of rule XIII of the Rules of the House of
Representatives requires each report by a committee on a public
matter to include any additional, minority, supplemental, or
dissenting views submitted pursuant to clause 2(1) of rule XI
of the Rules of the House of Representatives by one or more
members of the committee. The minority views of members of the
Committee are as follows:
DISSENTING VIEWS
The Minority offers the following dissenting views
regarding H.R. 1836, as amended.
First, I have concerns about the lack of process that has
been completed by the Majority in reporting this bill favorably
to the full House. The Majority's report of H.R. 1836, as
amended, (the bill) cites a Subcommittee on Economic
Opportunity hearing on H.R. 5870\1\ that took place on March
10, 2020, in the 116th Congress. H.R. 5879 is similar in
concept to the text of the bill but there are significant
differences in regard to new benefits and how they are paid for
under current budget rules. I also reject the Majority's
attempt to use process on a similar bill from a previous
Congress, and claim that a different bill, in a new Congress,
has undergone the same level of legislative rigor. Moreover,
not only have half of the members of the Committee changed
since the 116th Congress, but so too has the Administration. I
believe that many of the questions we pose below could have
been addressed if the Majority had included this bill in one of
the two legislative hearings held by the Subcommittee on
Economic Opportunity in the last year.
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\1\https://www.congress.gov/bill/116th-congress/house-bill/
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Second, I have policy concerns regarding the potential vast
expansion of benefits that would be provided if the bill were
enacted. There is no question that members of the National
Guard continue to serve the nation with courage and resolve in
the face of numerous and diverse missions as part of the
operational reserve. Under current law, active-duty service
under Federal orders for service other than training, is not
covered as qualifying time for the G.I. Bill unless this
service is in support of a national emergency following a
national declaration by the President. I agree that this bar is
too high and believe in simplifying the law so that any time
spent on active-duty orders for service other than training
would count towards G.I. Bill eligibility. To that end,
Representative Barry Moore (AL-02), introduced H.R. 2047 on
March 18, 2021, to achieve that policy objective.\2\ I am
supportive of this improvement because I question the
appropriateness of the benefits that are extended in H.R. 1836.
I do not believe in a tight fiscal environment that the
extension of eligibility for training time on active duty is
meeting the spirit of service in the National Guard compared to
providing benefits for full time active-duty service. I also
have questions about how this change could impact retention in
both the active and reserve branches. Once again, these are the
type of questions and concerns that could have been explored if
the bill had been subject to a legislative hearing. I note that
my staff had requested that H.R. 2047 be part of the agenda for
the Subcommittee on Economic Opportunity's legislative hearing
on April 14, 2021, but this request was denied by the Majority.
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\2\https://www.congress.gov/bill/117th-congress/house-bill/2047.
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Third, outside of the new benefits in the bill, I also have
questions on how the proposed changes to the funding fee for
Interest Rate Reduction Refinanced Loans (IRRRL) would impact
the use of these loans by eligible veterans. All members would
have benefited from this proposed change being part of a
legislative hearing where we could have heard the view of the
U.S. Department of Veterans Affairs (VA), the mortgage
industry, consumer groups, and veteran service organizations
(VSO).
Fourth, I have concerns about using the proposed offsets
for this program expansion given competing priorities. Since
the beginning of the 117th Congress, the members of the
Majority have joined Republican members in our pledge to
address the needs of toxic-exposed servicemembers and veterans
as our top priority. The Congressional Budget Office (CBO) has
concluded that the cost to expand health care and benefits to
toxic-exposed veterans will be in the hundreds of billions of
dollars over ten years.\3\ While the shape these benefits may
take is still a matter of debate, I believe we should hold off
on spending significant mandatory offset dollars, like those
proposed in this bill, until Congress acts on addressing toxic
exposure issues.
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\3\https://www.cbo.gov/publication/57669.
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Even if toxic exposure benefits were addressed, I believe
that there are more pressing priorities to spend the nearly
$2.0 billion dollars in offsets on than benefit parity for the
National Guard, especially improving benefits for service-
connected veterans. Finally, I have concerns that the true
costs of this bill are not being fully offset. The
Congressional Budget Office estimate for the bill states:
CBO estimates that enacting H.R. 1836 would increase
on-budget deficits by more than $5 billion in each of
the four consecutive 10-year periods beginning in 2032
because a provision taking effect on August 1 of that
year would count both active and inactive duty for
training before, on, or after that date for benefits
under the Post-9/11 GI Bill. The increases in home loan
fees under the bill would expire before 2032 and thus
would have no long-term effects on deficits.\4\
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\4\https://www.cbo.gov/system/files/2021-12/hr1836.pdf.
Since the majority of the expansion of benefits for
inactive duty training and other benefits would not occur until
2032--over a decade after the enactment of this bill--the
Committee does not have insight on the true cost to future
taxpayers if the bill is enacted once the home loan fee
extension expires in 2032. Once again, if this bill had the
benefit of a legislative hearing, the Committee could have
explored whether the merits of the benefits expansion in the
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bill outweigh the additional cost to taxpayers.
Mike Bost,
Ranking Member.
[all]