[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

           *       *       *       *       *       *       *


CHAPTER 33--POST-9/11 EDUCATIONAL ASSISTANCE

           *       *       *       *       *       *       *


                       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/
5870?q=%7B%22search%22%3A%5B%22%22%5D%7D&s=1&r=4.
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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]